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Akkiool.

RECOND

FE NO. 51

13 FER 1978

DESK OFFICER

INDEX

PA

REGISTRY Action Teken

No

GE Lyth Esq OBE JP Director of Audit

Central Government Offices HONG KONG

15 February 1978

See 2

3

ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 1977

1.

We have received the Annual Report of the Director of Accounting Services, together with your report, and they have been seen by Mr Carter, the Audit Adviser.

2. Mr Carter has commented that the report raises a number of points of substance, particularly paragraphs 40 to 43 and 74 to 92. But, in view of the Governor's comments that the criticisms are receiving serious consideration, he feels there is no need for us to take this point any further.

3. Mr Carter has asked what progress is being made in setting up the public Accounts Committee. We have seen ExCo memorandum XCR (77) 264 and the record of subsequent discussions on this subject in ExCo, but can find no trace of it having been raised in LegCo. I should be grateful to know theccurrent position.

J Thompson

Hong Kong and General Department

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