CO129-514-4 Repayment of excess military contributions advanced by Hong Kong 9-1-1929 - 10-1-1930 — Page 42

( 3 )

41

it is clear that had the Military Contribution of the

Government been less instead of greater than the cost of

the garrison it would have been necessary to replenish the

Treasury chest by a supply of dollars purchased in this way

at the high exchange rate of that day.

Further, at the time in question this

Government, taking advantage of the favourable rate of

exchange, was remitting large sums to London for investment

as surplus funds, and it is arguable that had these overpay-

ments not been made this Government would be enjoying an

equivalent amount of sterling credit, in addition to interest

thereon.

mo.2/4567/25

Stigste

д

I understand further that in 1925 an overpay-

ment of Military Contribution by the Straits Settlements

Government was refunded in sterling.

5.

For these reasons I still consider that the

most suitable method of repayment would be by sterling

through the Crown Agents for the Colonies; but pending your

further consideration I shall deduct up to $592,711 (see your telegram of February 3rd) without prejudice to the

claim to make additional deduction up to the complete equivalent of the sterling amount originally overpaid.

I have the honour to be,

Sir,

Your most obedient humble servant,

Governor,

&c.