CO129-605-4 Government loans 12-7-1946 - 6-1-1948 — Page 27

suggests a lack of confidence in raising even a $100,000,000 loan.

I attacn loose copy of (54) witn

G

Mr. Caine's note regarding the Hong Kong and Malayan proposals and also Malayan Estimates files 52083 of 46/47. In framing the draft opposite I have noted the terms of paragrapn 5 at (9) on file. Further action on that file is pending see Mr. Caine's Minute or 2.6.47.

the 1947

W. q.

Boji.

5th June, 1947

Mr. Mayle

I am sorry to nave delayed tnis file a few days but there as been rather severe pressure over here.

You will see from Mr. Caine's comment on the green slip above 51. that while not entirely ruling out the suggestion inade in that telegran he does not like it very much as an expedient to be adopted at the present juncture. He has suggested a discussion about the Hong Kong proposal at the same time as a proposal received from Malaya for taking something from the currency reserves to meet a budget deficit.

I am inclined, however, to think that the immediate action on the Hong Kong case is to point out that 54. has crossed 53. and ask for further comments in the light of 53. I attach a suggested draft telegram. If this issues it will not of course prevent our discussing tue Hong Long question on its merits.

dagine

9

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kösen

apin

ari

1:B.W.

13.6.47.