Other Possibilities
Other possibilities that have been examined are :-
(1) Loan from the World Bank
(11) Loan from the Asian Development Bank
(iii) Continental Loan
23. Soem thought has been given to the possibility of interesting the World Bank in this project. But the mont recent IBRD report on
Hong Kong (following a visit by the Bank's team in 1968) indicates quite clearly that an application to the Bank would not succeed in the present bunyant state of the Colony's finances and while the Colony's reserves remain as large an they are,
24. Hong Kong became a member of the Asian Development Bank in March of this year. In the course of joining Hong Kong more than once expressed the intention of seeking no loan from the Bank in the near future. To backtrack on this now would be difficult, particularly to the extent of a loan that would exceed Hong Kong'a nominal subscription to the Bank of V.9. X8 million, Other points bearing on this question are 1-
(a) Any loan from the A.D.B. to lồng Kong would need to be
guaranteed by H.M.O.
(b) The largest loans the Bank has granted to date have been for
8 U.8. 108.j the Bank's current rate of interest on loans is not as high as in the London market but at 6% it is by no means 'soft' money.
(c) Although the Bank has ample funds, there is a long list of
loan applicants in the pipeline, the Bank's staff is
somewhat inexperienced and considerable delay in the processing of applications is inevitable.
(d) The Board of Directors, in consequence of events connected with Hong Kong's acceam on to membership, tends to be suspicious of Britain's intentions in regard to her responsibilities towards Hong Kong (1.e. that we shall wish to 'wish' them onto the Bank) and these sumpicions would
undoubtedly be confirmed if we were to sponsor a loan requent at this time.
/ In the
MEM
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