CO129-606-4 Hong Kong Loan- government grant 1-4-1947 - 2-3-1948 — Page 97

54126/6/47

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DRA DESPATCH TO GOVERNOR. HONG KONG.

FOR. TREASURY APPROVAL BEFORE ISSUN.

CONFIDENTIAL

Copy for

54125 11/460 (1946 Enfal 36550/19/47. (Cop of uk we) 106) 55080/18/46 (W.D. Compr

Asia Gesmbs) 55077/4/47 (Macas)

5:3652/49 (1947 Esti)

sir,

I have the honour to refer to paragraph 11

of your despatch No.164 of 4th November 19446 and to paragraphs 16 to 18 of your despatch No.48

of 24th July 1946 in which you raise the

question of H.M.G. making a free grant to

Hong Kong to assist the Colony in meeting the

expenses of rehabilitation which have arisen as

a result of the Japanese occupation of the

Colony in view of the assistance given by H.M.G.

to the Goverment of Malta. As you are aware

H.M.G. has already made advances to. the

Hong Kong Government amounting in all to

£3,250,000 up to 31st March, 1947. AB

indicated in the correspondence, of which EKEN

copies were enclosed in my savingram No. 107 of

31st July 1946, these advances have been

treated as loans although no terms of interest

have yet been agreed upon and the terme of

repayment have so far been confined to the

amounts received from the sale of supplies

purchased with the assistance of the advances (see paragraph 4 of Treasury letter of 22nd

November 1945 referred to in paragraph 2 of the

telegram from the Commander in Chief C. A 2210

of 22nd February 1946).

/2. In