CO129-553-9 Empire Air Mail Services- participation of Hong Kong in proposed development 11-3-1935 - 21-5-1935 — Page 72

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is considered that such reimbursement from loan funds require Treasury sanction to exemption from military contribution it is requested that this may be obtained.

Section 2 (xi), Revenue from Profits arising from the Crown Agents Routine Realizations. This revenue might arise from many sources and is carried to the exchange account. The principal items are:-

(a) Withdrawals from Joint Colonial Fund for current purposes.

(b) Family remittances.

(c) Advances to officers.

to other Administrations.

(d) Sale of stock.

e

(As regards (a) money is remitted to the Joint Colonial Fund at, say, 1s. 4d. Part is withdrawn when the Treasury rate is, say, 1s. 34d., and in a later month part is with- drawn when the Trasury rate is 1s. 44d., the differences in dollars being carried to exchange account. Regarding (b) family remittances are recovered by deduction from salaries monthly, but as they do not appear in the Crown Agents' cash account until the following month a difference invariably occurs which is adjusted by a transfer to exchange account. Similar differences arise with (c), advances where recovery is effected at a rate other than the Treasury rate ruling in the month in which the advance was made. Adjustments arising from (d) occur when the Crown Agents take advantage of a favourable opportunity for a sale of stock and reinvest in some other security.

It is of course quite conceivable that an exchange account of this nature may show a debit at the end of the year and would with a rising dollar exchange. A few examples have been shown above, but other cases will arise from time to time, and it is practically impossible to make an exact list.

Section 4 (1). Capital Expenditure met from Revenue.--The capital expenditure on the Government Wireless Telegraphy Services defrayed from revenue up to the end of the year 1932 amounts to $618,975, 54 per cent. on which is $34,043.62. This figure of $618,975 will, therefore, be fixed and the 5 per cent. allowance from revenue of $34,043.62 for 1932 will, therefore, be constant. When the capital expenditure for 1933 is known 4 per cent. will be calculated on it and added to the constant figure of $34,043.62 and so on for the period of 50 years.

30th May, 1933.

EDWIN TAYLOR,

Treasurer.