CO129-606-5 Hong Kong Loan- Financial settlement 2-3-1948 - 4-10-1948 — Page 187

186

His Majesty's Government after most careful consideration have decided to accept this recommendation

Weverthelesa, they are by the Government of Hong Kong. anxious to give practical assistance to the Colony, as evidence of goodwill and of their belief in the Colony s

ture? The extent of such assistance must necessarily be deterlined by the ability of His Majesty's Government to help having regard to conditions in the United Kingdom following the crippling losses entailed by the war and the heavy burden of taxation falling on the United Kingdem taxpayer. In spite of these factors, they have felt able to offer Pau-chlowing pubstantial assistance to the

Colonyy beg

Iko

moorthogh affect che,

+

Ag-regards expenditure arising out of the rar it has been agreed that

(a) In the first place, His Majesty's Goverment will not seek way contribution from Hong Kong towards the cnat

and of the military administration;

(b) His Majesty's Goverment will treat as free grants the sdraaces vado prior to and after the establishment of civil governzert in Hong Kong, aucunting to £3,250,000 in all, except insotas 20 thay am has been used for the purobase of stores for re-anle shich has recited in dash receipts pro Hong Kong Government,

2

Cel Amball Grive further to

As a surthey storesøtes of their willingliese to asenes dog Tone, hie Monky" e Gavemanent au preparsu Asale, Joy

(a) to reske an intercet-free loan to the Colony up to a maximum of £300,000 to supplement any funds available to Hogg Kong for the construction of a modern airport of international standards,

(b) to make a free grunt of £250,000 for the Hong Kong University.

€.. Further discussions will take place between Ris Majesty's. Overnment end the Government of Hong Kong op the apportionment of the expenditure incurred on goods supplied by 3is Majesty's Government to Hong Kong after / civil government has been regatablished,

76 Having rogar: to the financial difficulties witn which too mnited Kdrydem is itself faces as a result of 10s ses incurred during the war, and having regard to the heavy burden which the United Kingdon taxpayer is called' upon to bear, the above proposals represent a great effort Statemen and a very real proof of sympathy and goodwill. endec

8.

I will term gre in a separate telegram áf· Foreign Office have any Pupisata on this draft statement,

Copies 8ent fo...

55217

Cerine

JK. Dis

553971

Treasury

Board of Prode Poreign

Fice

ہے

་་་

Kr: Crombie,

Mr. D.R. Sarpell, 0.B. E.

Dr. Pitblait.

Mr. husker,

Me. Sazlatt.