CO129-605-4 Government loans 12-7-1946 - 6-1-1948 — Page 34

CO129 Colonial Office Hong Kong Records 理藩院香港檔案 All

The Existing Hill. Gast. Lom 31⁄2 to 34

I donor j

the proposed

Stend at 101.

Come wiel

Got Tr.

the Exchange

moh ut much wend money,

сбр

adamant reyanding

لسة

Boys.

The consent incs. I gree;

but the

To be

noted on

54/26/6/67.

userves the straga

saare finely

the I represe

us

access

Hay Kay's

ja

The car

anistana pan Hila

Cowans Whabilitering & we should not lose sight of the

ayned.

point when that one

079

Ir. Hayle.

Mr. Forman Young spoke to me about this. He was unhappy about paragraph 4, which he thought showed rather too ruch of our hand with regard to possible future arrangements on sterling balances on which we have so far said nothing to individual Colonies, and also contained other points which right provoke unnecessary, and in present circumstances academic, argument. I agreed, therefore, that it fight be better to shorten it, and suggest that we substitute the following

"4.

Suggestion in your telegram No.1152 for borrowing from Exchange Fund as been very carefully considered in the light of paragraphs 2 and 3 of your telegram. In present circumstances, however, any recourse to the Exchange Fund, which could only mean a reduction in the sterling securities which the Fund would otherwise hold, would have precisely the same effect on general sterling position as direct borrowing in the London market. I am satisfied, therefore, that it would be undesirable to pursue this roposal at present."

+

If you agree, would you read this over to Mr. Norman Young and get his concurrence.

ہے

In Young Armed

متسا

agreeman.

dess

11. 8. 47.

متاسس

tean, lors

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