CO129-519-4 Adjustment of exchange account- payment of military contribution on profit on exchange 10-9-1929 - 10-6-1931 — Page 11

I do not myself greatly mind, but these questions have so far been ugardadas com peculiar t K.K. as to make it desirable that they and be dealt with by the dept. & theps. are accordingly registered CH. K., 2sh there -fore have thought that it was for the 5.2.Dept. to ariary the

conference. Whrevee dow array it had betar proceed expeditiously

&

nothing whatever has happened in the last six weeks & the Good has been promise a reply by the end of the year.

I agree that an internal confer musch seld here to dreide the line of attack befre we call the

conferenc.

The point of all this exchange business, ohne of retails, is just this:-

Hong Kong collets its reve

4 kups its accounts in

silver dollars.

Whenever it has a bit of money saved, it invests it in sterling securities, whichit has to to bery with silver dollars.

When ou it has to, on wants to, spind its covingo, it sells those

securities.

If the silos dos car has depreci- -ated in the interim, it gets more silver dollars then it paid for the securities & this profit' has, for technical reasons, to be carried

to Revenue.

contri.

vade the existing amang with the WO, the annual military

bubim 1ɔ calculated at 20% of te net Revenue of which this "profit forms part

But the percentage system was diated so that the Col. The pay more contibution in 'good' years