CO129-605-5 Government loans 4-2-1948 - 8-1-1949 — Page 20

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

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

Page 20Page 21

Comments

Approved members can add comments, bookmarks, and private notes.

No comments yet.

Private Research Note

Private notes are available after approval.