CO129-547-4 Military contributions 23-2-1934 - 28-11-1934 — Page 6

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under the existing arrangement the fraction of the

amount ($996,980) required for the service of the

1906 loan which equals the difference between the

gross receipts of the Railway ($1,630,611) and the

working expenses thereof ($886,381) or $744,230

is exempted from assessment of Military Contri-

bution.

If the new loan is to be exempted from

Military Contribution per se the War Office will (subject to what is writter below)

ΛΑ

lose the following amounts (1933 figures):-

20% of total amount for service of

1906 loan ($996,980) less

amount exempted under above arrangement ($744,230) = 20% of 252,750 = $50,550

20% of amount required for service of

loans of 1887 (£140,000) and 1893

(£201,800) = 20% of $298,000

approximately:

Total annual loss

(on basis of 1933 figures)

59 600

$110,150

Although (5) is confined to the prospective loss.

of $50,550 on the first item it appears that the

loss to Army funds will amount in fact to some

$110,000 annually. The War Office say that,

with the exception of item 7 the schedule to the

new loan approximates closely to that in

paragraph 8 of (5) on 92622/32, and it is only

to the inclusion of $3,400,000 under item 7 that

they object.

The funds for the redemption of the

£1,485,733 1918/43 Sterling Stock are to be

provided: (approximately).

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