No.400.
My Lord,
C.
GOVERNMENT HOUSE,
HONGKONG, 10th September, 1929.
/30
Goo.47207/25
Coisant Treas: & W.C.
62832/79. 19/2/30.
I have the honour to refer to Mr. Amery's
despatch No.431 of November 26th, 1925, and to state that
the suggestions of the Director of Colonial Audit on the subject of the "Exchange Account" have been adopted, and
that the total profits on sterling transactions, i.e. the
direct sterling appreciation of securities realized as well as the appreciation in the dollar values of the original
investments, due to lower exchange, have been carried to
Revenue. I have however, on the Treasurer's representations
retained provisionally in a "Suspense Account Military
Contribution" the 20% Military Contribution payable on the
dollar appreciation factor partly on account of the Colony's
financial difficulty in meeting the payment and partly because I hope to obtain your consent on reconsideration to
the exemption from assessment of what is, I submit, in
reality only a book profit.
2.
As the issue is somewhat complex and has
never been put before you as a comprehensive whole, I propose
at the risk of repetition, to review the general position. regarding "Profit on Exchange" prior to the events which led up to Mr. Amery's despatch under reference and to report
THE RIGHT HONOURABLE
LORD PASSFIELD,
certain
&C.,
&C.,
&c.