totalled £71.4 million. The net cost to the Exchange Fund of the scheme was, therefore, £67.9 million. This compares vità total compensation from the U.X, Goverment, in respect of all of the sterling assets of the fund, including the sterling deposited with the banks under the Exchange Pund Guarantee scheme, of £13.4 million.
£13.4 million. The sum
The sum of £13.4
million includes interest earned on the balances in a special Bank of England suspense account opened to receive the implementation payments from the U.K. Government. account was closed on 24th September 1973.
Federal Reserve Bank
This
An account vas opened vith the Federal Reserve Bank of New York in July 1973 following the successful completion of negotiations with the Internal Reveme Service of the Department of the Treasury for exemption from with-- holding tax on income derived by the fund from vithin the United States. Tax free status was granted purmant to section 802 of the Internal Reveme Code of 1954 in letter from the Internal Revenue Service to the Federal Reserve Bank dated April 26th 1373."
RECEIPTS and PAYMENTS ACCOUNT
3.
ceipts
*
(1) Investment and other incose (net). Total investment and other income rose to £23.4 million, 29.41% 20,21% over the £19.47 million last year. Approximately 78% (1972 approximately 36%) of the £23.4 million was attributable to income from British Government and Local Authority securi- tics and represents a yield of 9,59% (calculated on the average of the beginning and end of year holdings at market values). The corresponding yields for 1972 and 1971 were 8.40% and 8.36% respectively. The decline in the proportion of income from securities resulted mainly from a decision, taken in Jarmary 1373, while the gilt edged market vas firm, to sell approximately £20 million worth of British Govern- ment securities (to provide funds to compensate the banks