LOWE, BINGHAM & MATTHEWS, HONG KONG

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and 5.76 arising from revaluation and representing an ex-

change loss of HK$991,157.22. Against this amended amount

of US$571,284.24, they claimed by way of set-off a sum of

US$440,000 which they submit had been available to them

in the form of earned exchange allocations at the rate of

4.02, but which allocations they had allowed to lapse.

Scott and English Ltd. have agreed to pay HK$217,800, re-

presenting the exchange difference on the net amount of

their US$ liability, thus leaving an exchange difference

of HK$773,357.22 to be written off in these accounts.

We have been informed that the US$440,000 Ex-

change Allocation allowed in the settlement with Scott and

English Ltd. would have lapsed as shown below if the same

procedure as applied to other traders had been enforced in

this instance :-

Date Lapsed

Amount

1950

US$

13th January

70,898.73

16th

81,613.30

24th

#

70,953.60

27th

#

29th

17th March

22nd "

2nd April

79,817.13

30,495.00

7,866.04

96,812.00

1.544.20

$440,000.00

Of the amount shown in the Consolidated Balance

Sheet, HK$2,299,440 was paid into bank on 26th May, 1950,

and the company had undertaken to pay the balance of

HK$217,800.00 before 30th December, 1950.

The full circumstances surrounding this case

have been placed on record by the Deputy Director in a

statement which is included as an Appendix (A) to this

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