CO129-629-4 Commerce and Industry Department- supplies branch. Includes a statement of accounts for May 1946-March 1950-... 1-11-1951 - 31-1-1952 — Page 48

LOWE, BINGHAM & MATTHEWS, HONG KONG

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In addition to the above, Fuel Section received

from S.C.A.P. 290,687 tons of Coal costing US$3,121,216,

Industry Section received 5,000 bales of Cotton Yarn cost-

ing US$1,440,000, and Marketing Section despatched to

S.C.A.P. goods to the value of US$4,638,509.

Scott and English Limited

In March, 1949, discussions took place in Japan

between representatives of the Hong Kong Government,

S.C.A.P., and Scott and English Ltd., concerning the over-

drawn balance of Scott and English Ltd., No. 2 Open Ac-

count with S.C.A.P. As a result of these discussions,

S.C.A.P. debited the Hong Kong Government Two-Way Account

in April, 1949, with the sum of US$ 600,000 in order to

liquidate this overdrawn position in S.C.A.P. books, but

no debit note to this effect has yet been received by the

Department. A credit of US$28,000 (in respect of an over-

charge) was notified by S.C.A.P. in April, 1950, and this

was finally amended to US$28,715.76 in June, 1950.

In May, 1950, when the debit of US$600,000 was

first confirmed in Hong Kong, a letter was addressed to

Scott and English Ltd. requesting repayment of the sum of

US$572,000 (1.e. US$600,000 less US$28,000) which, at the

then current official exchange rate of 5.76, equalled

HK$3,294,720. On 26th May, 1950, Scott and English Ltd.

paid HK$2,299,440 into the Department's bank account,

this payment representing the equivalent of US$572,000

at the pre-revaluation exchange rate of 4.02. A commis-

sion of 1% amounting to HK$11,497.20 was also paid into

the bank for credit of the Department.

In respect of the amended amount of US$571,284.24

due by them, Scott and English Ltd. have declined to accept

responsibility for the difference in exchange between 4.02