6
not clear what has happened to the Military Contribution on this amount, which would, I take it,
appear as Revenue.
In 1927 and 1928 routine realizations
by the Crown Agents involved the transfer of further
sums to revenue in respect of dollar appreciation
and the corresponding 20% deduction was added to the
"Suspense Account Military Contribution" which now
stands at $504,104.70.
The Governor asks that this sum and any
future profits on realization, i.e. profits due to a fall in the exchange as opposed to profits due to sterling appreciation, should be exempt from Military
The War Office view see Section 12
Contribution.
of Memorandum in 3 on 62832
-
is that the distinction
between the two forms of profit is untenable, but that "there might be something to be said for treating these transactions on investments (i.e. those relating to surplus balances) on a net receipts basis.
War Office attitude is reasonable.
A
منع
But surely is a pretty generally
ว The
Dollar appreciation
is "profit" internally no less than sterling
appreciation, although it is true that the same fall in exchange which produces this "profit" also
automatically increases the burden of expenditure ·
I question the statement (paragraph 9 of this despatch) that revenue will remain unaffected in spite
of a falling exchange.
Paragraph 11 states a curious argument,
10
based on the questionable assumption that/is sounder
accepted principh? finance to sell securities outright rather than to
G.L.M.G
have recourse to temporary bankers loans.
As regards investments made by Crown Agents (see paras 2, 12 and 13), there are