CO537-(1262-1649) — Page 116

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5.

On the basis of the above figures I give below two examples of what the final position might be.

In the first I have assumed that all repayments of liabilities purported to have been made by the Liquidator are deemed to be valid payments.

80

Contnd:-

EXAMPLE A.

2

cms

Ref.:

THE NATIONAL ARCHIVES

CO 537/1369

restrictions. Further information is given in the enclosed 'Terms and Conditions of supply of National Archives' leaflet. Please note that this copy is supplied subject to the National Archives' terms and conditions and that your use of it may be subject to copyright

Total Liabilities discharged as in para 4 above

These payments would absorb:-

(1) Cash on Hand on 23rd Dec.1941

(2) Unissued and "duress notes"

(3) our pre-occupation balance with

the Hongkong Bank to extent of

22.67.959

$2,35,123

9,00,000

11.32.838

22,67,959

leaving us with a claim against the Hongkong Bank for $2,95,396, being the difference between our balance with them on 23rd Dec.1941 of $14,28,232 and $11,32,836 as in (3) above, i.e., the amount of our original balance employed in extinguishing our liabilities.

6. In the second example I have assumed that only 50% of the repayment of liabilities purported to have been made by the Liquidators are eventually deemed to be valid.

EXAMPLE B.

Total Liabilities discharged (being 50% of the

figure in Example A)

These payments would absorb:-

(1) Cash on Hand on 23rd Dec.1941

(2) Unissued and "duress notes" to extent of

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$ 11,33,930

2,35,123 8,98,807

₫ 11,33,930

leaving a balance of $1144 of "duress notes" not used for the purpose

of extinguishing liabilities and in addition we should have a claim against the Hongkong Bank for the whole amount of our preoccupation deposits with them.

7. I need not labour the point further and have given the two examples partly to indicate how I have understood the principles you wish to establish and partly to show how the results will vary according to the facts as they may eventually be established.

Contnd:-

Ins