The Local Auditor. Hongkong to the Comptroller, and Auditor General.

Not

REC

C.O.

6889

REC 27 APR 93

Audit Office

21st March 1893

Sir,

I have the honor to inform that the Secretary of State forwarded a copy of your report for the year 1891 to the Colonial Government.

The Colonial Secretary could not understand how it was that when the expenditure for 1891 exceeded the revenue by $423,783, the excess of assets over liabilities was reduced by only $1,685,511 during the year, and he asked me if I could explain it for him.

I spoke to him on the subject and told him that I would have to go into the Accounts for the year to explain the difference accurately, but that I could roughly explain it from two or three of the items.

He referred the matter to me officially, and I pointed out that...

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