CO129-539-8 Military contributions- basis of assessment 25-4-1932 - 27-2-1934 — Page 86

86

1. As regards paras 10 and 11 of

your letter, it is noted that the

Army Council i draw a distinction

(and actual profits, and recondly between the forfits)

firstly between book profits arising from

sterling appreciation of the securities,

and profits arising from depreciation of

the Hong Kong dollar. As regards the first,

I am to point out that the considerati ons

put forward in the Colonial Office letter

of 20th November, 1931, apply just as much

to realised profits and losses as to book

profits and losses. If such profits, whether

realised or not, are included in the revenue

liable to assessment, it should be admitted

as a corollary that deductions should be

made for

losses. Moreover, it is felt

that it is not proper to draw a distinction

between changes due to ordinary appreciation

or depreciation of securities, and changes

due to alterations in the value of the

Hong Long