CO129-453 - Acting Governor Claud Severn - 1919 [1-3] — Page 231

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The Report of the Enemy Debts Committee dis- -cusses the question of exchange between marks and sterling. A question of exchange will also arise in a few cases where the debt was incurred in Mexican or Hongkong dollars. Probably it would be advisable to provide that such debts must be discharged in Mexican or Hongkong dollars without taking into account any variations in exchange between dollars and sterling. It would be difficult in some cases to fix any rate other than the rate on the day of payment. These cases will probably be very few. This should not apply to the payment of the proceeds of the liquidations, The bulk of the proceeds of the liquidations were invested in British War Loan

securities when the dollar was at a lower rate thm at

present, and it would seem that in such cases the payment

should merely be the amount of the market value of the referable securities at the time of payment.

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I understand that the scheme does not apply to claims for damages.

I have the honour to be,

My Lord,

Your Lordship's most obedient,

humble servant,

Adustevem

Officer Administering the Government.