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it is clear that had the Military Contribution of the
Government been less instead of greater than the cost of
the garrison it would have been necessary to replenish the
Treasury chest by a supply of dollars purchased in this way
at the high exchange rate of that day.
Further, at the time in question this
Government, taking advantage of the favourable rate of
exchange, was remitting large sums to London for investment
as surplus funds, and it is arguable that had these overpay-
ments not been made this Government would be enjoying an
equivalent amount of sterling credit, in addition to interest
thereon.
mo.2/4567/25
Stigste
д
I understand further that in 1925 an overpay-
ment of Military Contribution by the Straits Settlements
Government was refunded in sterling.
5.
For these reasons I still consider that the
most suitable method of repayment would be by sterling
through the Crown Agents for the Colonies; but pending your
further consideration I shall deduct up to $592,711 (see your telegram of February 3rd) without prejudice to the
claim to make additional deduction up to the complete equivalent of the sterling amount originally overpaid.
I have the honour to be,
Sir,
Your most obedient humble servant,
Governor,
&c.