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FINANCIAL STRUCTURE
$3 million during the year, owing mainly to the repayment of £200,000 of the United Kingdom's interest-free loan of £3 million for the development of Kai Tak Airport. This loan is repayable by 15 annual instalments; the first repayment was made on October 1, 1961. The Rehabilitation Loan, which was raised in 1947-8 to cover part of the cost of post-war reconstruction, is repayable in 1973-8; its sinking fund stood at $28.7 million on March 31, 1970.
In addition to the Assets and Liabilities referred to, there exist for special purposes the Development Loan Fund and a Lotteries Fund (see Appendix 8). The Development Loan Fund, of $654 million, is used to finance social and economic development proj- ects of a self-liquidating nature. The greater part has been used for low-cost housing schemes, but during the year an allocation of $15 million to cover interest-free loans to University students was
! approved. At March 31, 1970 liquid assets amounted to $13.4 million and outstanding commitments to $133.5 million. The Lotteries Fund, established in 1965, is for the support and develop- ment of social welfare services. The fund started with a transfer from general revenue of $7.4 million and an additional $20.7 million was credited during the period June 30, 1965 to March 31, 1970, by which date grants and loans amounting to $18.6 million had been approved. A further sum of $1.3 million, being unclaimed prize money as at March 31, 1970, is held in deposit. Details of the Colonial Development and Welfare schemes and grants are shown in Appendix 11.
The audit of all public accounts and certain special funds is carried out by the Director of Audit under the general supervision of the Director General of the Overseas Audit Service. Annual reports on the accounts by the Director of Audit and the Director General are presented to the Legislature and transmitted to the Secretary of State.
DUTIES
There is no general tariff. Five groups of commodities-alcoholic liquors, tobacco, hydrocarbon oils, table-waters, and methyl alcohol -are subject to duty, whether they are manufactured in Hong Kong or imported. In certain cases, preferential rates are charged on local manufactures and imports from other Commonwealth countries.