CO129-544-8 Adjustment of exchange account 1-6-1933 - 31-7-1933 — Page 2

I Gov 319

L.. y of

correspondence

the Andel'd.

forward contracts

2

1.6.

выписат

the D.C.A. regaining

Requests withroval

of discretion being exercised locally.

I do not myself see any objection to the

particular transaction which forms the subject of

this despatch and to which the Director of Colonial

Audit has taken objection. In the stated circum-

stances the buyingof forward exchange appears to me

to have been a prudent means of insuring against

an expected fall in the exchange. If it is agreed

so to regard the transaction it can not reasonably be

criticised because the exchange subsequently rose.

I do not know whether a similar question is

likely at present to a rise in any other Colony. But

in any case the matter seems to be one upon which a

general ruling should be given.

Subject to observations of G.D. (? Sir J.

Campbell might be consulted) I suggest that the

Governor should be given the discretion for which he

asks in paragraph 5 of the despatch. I am doubtful

whether we need fetter such discretion,if given, by

any limitations or conditions.

Smero

est

I have been an arte ti trace a hormon carl

This kind or

"Fever ad' th. in the subject.

y

a question which is not likely to arive in

more over a

o Mher Coats.

In my

view this contrast was

undoubtedly

"Shecalative". The Callory badgetted

m

the basis

7