Memorandum on the Financial Questions Arising Out of the Proposed Separation of Burma from India

The Controller of the Currency in India would issue instructions regarding the management of the currency in Burma to the Imperial Bank of India which however in its turn would have to issue instructions to the officers of the Burma Government in charge of currency chests and would have to arrange for the necessary inspection of the chests. [...] The Government of Burma should receive a proportion o(i) the total gold and sterling assets held in both the Gold Standard and Paper Currency Reserves and (ii) the rupee securities held in the Paper Currency Reserve at the time of the introduction of the new currency based in each case on the ratio of the amount of notes presented by the Burma Government to the total note circulation at that [...] The determination of Burma's liability in respect of the debt of India outstanding at the time of separation involves the following steps :- (a) the calculation of the total amount of the debt ; (b) the allocation of portions of the debt against productive or comercialised assets ; (c) the apportionment of certain specific assets and liabilities on terrtorial grounds ; (d) the apportionmen [...] Sir Henry Howard holds the view that the amount of the pensionary charges to be debited to Burma on separation is the amount of the pensionary liability incurred in Burma at the date of separation by the Government of India on account of the administration of central subjects. [...] of the whole revenues of existing India-cum-Burma in favour of a separated Burma just as it carries the implication of the assumption by Burma of the same ratio of the unproductive debt of the past also involves Burma in the same share of any other joint liabilities incurred up to the date of sepration The main such liability incurred on joint account is the one for the payment of pensions