and point out that the
are either
sace
or
a
an
unnestucted
loan in
I think however that
inform Treasing
two
alternatives
beaver bonazo
the Lindon market.
we
that we
London loan
should first
there would
allcenahue to
in
that
of
racing
a
see
فا
be
the
no
Gov
further local loan
Considers
profect
con actions refered.
Na
13
even
1
account the changed
after taking
taking into comactions at A of m
is that
The diffealty sufficiendly attinctive
As Mi Marshall
Kelvin Shard's minute
A
35% lan
виде
not
اس
with NT; general frances,
Jurself to
In
present circumstances
ud
concerned
letter from
- Sisblads would be more appropriate
Abreme
24/11
hsumer,
Three are other concidunting
about which I have spchen Khi Brillen before adrimes on this cause could
landssted
This seems to be a subject on which we are progressively making no progress.
2.
I agree with Mr. Palmer's observation that Mr. Marshall is not concerned with Hong Kong general finances, and that he therefore is bound to look at this issue from the limited aspect of exchange control. What he says on this subject doubtless has some validity (though even on these limited grounds I do not think the case is very strong), but the point is that Hong Kong have an urgent need to raise money as well as an urgent need to mop up surplus wealth, and that we ourselves are telling all Colonial territories, Hong Kong included, to keep off the London market as long as possible. In these circumstances I feel convinced that, even from the Treasury point of view, the exchange control arguments need to be weighed against other arguments of broader and more fundamental significance. I therefore feel that there is a great deal to be said for an immediate approach to the Treasury, in which we would point out that for the sake of exchange control arguments of doubtful validity, we are preventing Hong Kong from doing things, which on all other grounds we and the Treasury regard as both desirable and necessary.
3. It might be difficult, however, to take such a line regarding Hong Kong alone. The same issue has arisen in a number of West Indian territories, and if we are to make a frontal attack on the Treasury, there is clearly much to be said for doing so on an "Empire-wide" basis. I therefore called for the Finance Department file on premium bonds in general, and this is now attached
immmediately/
7
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