CO129-625-1 Trading Reserve Fund 1-5-1950 - 31-10-1951 — Page 15

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4. I confirm my approval expressed i paragraph 4 of my telegram No: 313 Confidential of the 2nd March, of the setting up of a Development Fund and an Essential Commodities Equalisation Fund. As you are already aware, I fully appreciate the necessity for the stockpiling of essential foodstuffs and commodities and I consider that the possibility of future losses on these stocks must be accepted. I agree that in general, aggregate losses resulting from the sale of stocks below their cost price should be transferred as a charge to the Equalisation Fund, and that the balance of this fund should be transferred to the Development Fund when Government is in a position to cease its trading activities. I look forward with interest to your further communication about this latter fund in connection with the Estimates for 1951/52.

X

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5. In conclusion, in view of the arguments adduced in paragraph 10 of your despatch, I accept your proposal that as from the 1st April, 1950, interest at the rate of 31⁄2 per annum should be charged in the trading accounts on the maximum monthly balance on the combined Suspense Accounts as part of the expenses of the Department, and that this interest should be credited to general revenue.

I have the honour to be,

Sir,

9289

Your most obedient

humble Servant,

شیر

(Signed) en

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