LOWE, BINGHAM & MATTHEWS, HONG KONG
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and 5.76 arising from revaluation and representing an ex- change loss of HK$991,157.22. Against this amended amount of US$571,284.24, they claimed by way of set-off a sum of US$440,000 which they submit had been available to them in the form of earned exchange allocations at the rate of 4.02, but which allocations they had allowed to lapse. Scott and English Ltd. have agreed to pay HK$217,800, re- presenting the exchange difference on the net amount of their US$ liability, thus leaving an exchange difference of HK$773,357.22 to be written off in these accounts.
We have been informed that the US$440,000 Ex- change Allocation allowed in the settlement with Scott and English Ltd. would have lapsed as shown below if the same procedure as applied to other traders had been enforced in
this instance :
Date Lapsed
Amount
1950
US$
13th January
70,898.73
16th 1
81,613.30
24th
70,953.60
27th
17
79,817.13
29th
??
30,495.00
17th March
7,866.04
22nd 11
2nd April
96,812.00
1.544.20
$440,000.00
Of the amount shown in the Consolidated Balance Sheet, HK$2,299,440 was paid into bank on 26th May, 1950, and the company had undertaken to pay the balance of HK$217,800.00 before 30th December, 1950.
The full circumstances surrounding this case have been placed on record by the Deputy Director in a statement which is included as an Appendix (A) to this
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