Wt. 29446/552 9/46 50m. S. & S. Ltd.
C, O.
Mr.
Mr.
Mr.
Jonemer 345
Boss
Butters
Galsworthing 7/8 Mr. Moyle
Mr J.
DRAFT. LETTER
D.R. SERPELL, ESC., O.B.E.
TREASURY.
Graft [ Graffe telegram below]
FURTHER ACTION.
Copy, with
сору lo
of enclosure, AH. Kicks B Agents
в
56]
inni
54126/4/47
Permt. U.S. of S.
Parly. U.S. of S.
Secretary of State.
Dear Serpell,
3 drafe
Vingt fr. 43
T
ith reference to Hong Kong telegram
No. 1152 of the 16th July regarding the
proposed loan, I enclose a draft of our
progest reply in the terms of which I
trust you will agree.
It seems that a normal loan issue is
not likely to be very successful locally,
we crender thinfire that part of
the and it seeurs to us that the loan is more
lvan shawist
likely to be successful if part were
floated as a tap issue, to which the
and the puble
local banks could subscribe; and part
as a premium bond issue which might appeal
to the local Chinese investor.
If the full $150 millons could not
be obtained in the above manner, we
would see no objection to a reasonable
amount of the Exchange Fund assets being
invested in the loan. $300 million of
those assets are in respect of H.K. notes anacon held
Carge folheton of urchased in China and part of these notes
is hounded
are held by the Chinese és e-eare
chaften apint depreciation fitis non curly. investrient. By investing part of the
of the Lund assets in the proposed loan, we are thus
indirectly making the Chinese subscribe
thereto, as the 0.A.G. points out in
para.2 of his telegram No. 1152.
However
No comments yet.
Private notes are available after approval.