103183-1926-Supplementary-Bills-read-a-first-time--The-Hongkong-Treasury-Bills-Local--The-Hong-Kong-Treasury-Bills-London- — Page 2

181

2. The Crown Agents point out that as a loan is usually required to pay for works of construction, the execution of which is expected to take some years to complete. it is far more economical, instead of issuing a loan at once for the whole amount, to borrow the money in instalments as re- quired, at a comparatively low rate of interest, either by obtaining advances through the Crown Agents from other Colonies, or, failing funds for such advances, by the issue of bills, and only to issue the loan when the works are well under way and when a more exact estimate of their cost can be framed.

3. This bill is therefore introduced in order to enable the Government to borrow money by the issue of Treasury bills in Hongkong should occasion arise. It is comple nen- tary to another bill which is being introduced to give the Government the power to borrow money by the issue of Treasury bills in London. Both the bills are introduced on the suggestion of the Secretary of State. They have been adapted from a draft prepared by the Crown Agents in consultation with the legal advisers of the Secretary of State.

J. H. KEMP,

Attorney General.

9th March, 1926.

C.S.O. 2568/22.

[No. 4:-12.3.26.—1.}

A BILL

INTITULED

An Ordinance to regulate the issue of Hong-

kong Treasury bills in London.

WHEREAS it may be expedient from time to time that the Crown Agents for the Colonies on behalf of the Governor should borrow money by the issue of Hongkong Treasury bills in London:

AND WHEREAS it expedient to provide in one Ordin- ance the terms and conditions applicable to the borrowing of money by the issue of such bills:

Be it therefore enacted by the Governor of Hongkong, with the advice and consent of the Legislative Council thereof, as follows:

1. This Ordinance may be cited as the Hongkong Short title. Treasury Bills (London) Ordinance, 1926.

2. The Governor whenever authorised thereto by a Power to resolution of the Legislative Council may request the borrow by the Crown Agents for the Colouies to borrow by the issue in issue of London of Hongkong Government Treasury bills sums bills.

Treasury not exceeding the amount specified in such resolution; and the Crown Agents may also, with the approval of the Governor, borrow from time to time by the issue of such Treasury bills such sums as may be required to pay off at maturity bills already lawfully issued by them and outstanding.

3. The principal moneys represented by the Treasury Principal of bills issued under the provisions of this Ordinance are bills.

hereby charged upon and shall be payable out of the general revenues and assets of the Colony.