CO129-519-4 Adjustment of exchange account- payment of military contribution on profit on exchange 10-9-1929 - 10-6-1931 — Page 13

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Way

Account" would be for other Colonies.

I am

sure that the right thing to do is to enter as revenue any appreciation in investments shewn at the end of the year, and to make the valuation of the investments in Hong Kong dollars, that is, in silver, thus making no distinction between appreciation in ordinary sterling values and appreciation solely due to a fall in the price of silver. Similarly, depreciation resulting from a fall in the sterling value of securities or from a rise in the price of silver and consequent appreciation of the Hong Kong exchange, ought to be charged as

expenditure.

This appears to me to be merely

hether

a question of correct account keeping. the Military contribution ought to be charged

on items entered as revenue on account of

appreciation of securities or a fall in the silver exchange is another question, and it seems to perfectly clear that the Military contribution ought not to be payable on such

items.

nice

I have not delayed this paper to

read up again the question about the Hong Kong Military contribution, but it seems to me

quite clear that it is at present on a wrong

basis altogether, and that if we are to

continue the system of a percentage of revenue

we ought to have a schedule shewing exactly

the revenues which are to be included, and

these should be based on a general principle

of including receipts from taxation and

nothing else.

You will see that we are supposed to be going to have a Conference about this,

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