CO129-605-4 Government loans 12-7-1946 - 6-1-1948 — Page 219

-3-

We suggest

224

that the Ordic

loan and it may be desirable to

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funça authorise consider algeconstruction and re-

You doublters

nalise as will as we

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pound of very)-

The third issue is.

habilitation loan of the order of

$100,000,000.

The first question to

be decided is whether a figure of this

order or some lesser figure can be

contemplated

2. We imagine that the Treasury

will require that, if it is possible to

raise $25,000,000 locally the amount

should be raised even at a rate of 32% In other connections the Treasury have

indicated that they consider 31% is

not too high a rate for local colonial

borrowing. The fact that the principal

subscribers are likely to be banks H.K.|

which would otherwise invest in

but feel that- in sterling securities is a beint which spite of this, Woral bollowing is

we understand does not cause the preferable even uts a

Substantially

Treasury any qualms from the point of! myhu zale

view of the effect on the colonial

From The to sterling balance position. Kaving

regard to the need for anti-inflation

mean word

policy we are prepared to urge upon

the Governor the raising of $25,000,000

at 32%;

3.

Whether

think a definite assurance can

be given that Hong Kong would be

allowed to raise the approved balance

whenever the Crown Agents find it

necessary in order to retire any

advances made from the Joint Colonial

Fund. This point is dealt with above

add

and it is only necessary to

that if

such an assurance cannot be given then

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