76
our
Again as regards the last sentence of paragraph 11 of your letter our reference in sub-paragraph 2 of paragraph 11 of letter to the amount involved being small is not to the total increase in the value of all securities due to changes in the of the dollar but to that part of the increase which arose from the
...etai
ue
securities purchased from surplus balances. We had agreed in sub-paragraph 1 of paragraph 11 of our letter that any profits (sterling or dollar arising on the sale of investments bought with the proceeds of land sales are exempted from assessment for military contribution and as you stated in your official letter f 20th November, 193162956/31 confirmed in your
confirmed in your 1er to me of the 6th February 1939 same number, that the whole or practically the whole of Hong Kong's investments has been made from the proceeds of land sales, the amount of investments arising from, surplus balances ust be small and consequently I gathered that you agreed that the dollar profits arising from their sale must be very small.
Our point is that we claim military contribution on any su included in the revenue arising from increases in value of securities which represent the investment of balances of general revenue (not land sales). The sterling part is covered by Colonial Regulations and if the dollar part is small we are prepared to waive it. Therefore, if you still stand by what you said in your letter of 6th February all that is necessary from you to dispose of the outstanding point in connexion with the treatment of revenue arising from appreciation of securities is a confirmation that any increase in the dollar value of sold investments of general balances not already covered by paragraph 291 of the Colonial Regulations can only be very small.
In the circumstances perhaps you would like to reconsider the terms of paragraph 11 of your letter. I shall be happy to talk the point over with you at any time if you think it would help to clear up the matter.
་·
dc.>
Yours sincerely,
pincerał
2
Fawway.
三
+ No. C. 82756 / 3.1 [NO, 16]
+
Rall