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 50

LOWE, BINGHAM & MATTHEWS, HONG KONG

report.

14

Exchange Losses due to Revaluation of S.C.A.P.

A number of firms had received advance Exchange

Allocations which at the date of revaluation remained out-

standing since the firms had defaulted on their corres-

ponding export contracts or their undertakings to export

to Japan. Where such default is considered to be the

firms' responsibility, efforts are being made by the De-

partment to reclaim from those concerned their share of

the exchange losses attributable to revaluation. No credit

has been taken in these accounts for such claims which are

to be brought to account only upon the actual receipt of

the amounts recoverable.

Goods received from Japan 1946/47

Included in the Section's accounts is an impor-

tation of Cotton Piece Goods for rationing purposes which

was disposed of at a loss of HK$398,756.99 and this has

not been shown separately.

Provision for Exchange Loss on Outstanding S.C.A.P. $

Obligations - HK$3.134.950

**

On 31st March, 1950, the Department had commit-

ments to supply approximately US$1,855,000 at the pre-

revaluation rates of US$1 HK$4.02 and a provision of

HK$1.69 per US has been created to cover the expected

loss on these outstanding commitments.

Claims

There are a number of outstanding claims in fav-

our of and against the Department which have not been

finally settled. No provision for these has been made in

the accounts but we are informed that on balance they are

in the Department's favour.

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