Sub-enclosure 2.

52

COPY

No.3/167.

Sir,

Exchequer and Audit Department,

Somerset House. W.C.

7th July, 1899.

I am directed by the Comptroller and Auditor General

to acknowledge the receipt of your letter No.4 of 18th May on

the subject of the conversion into currency of certain transactions appearing in sterling in the accounts of the Crown Agents

for the Colonies, and suggesting that, in order to obviate the

difficulties in accounting which have been experienced in the

past, such entries, which relate principally to short loans out

of sterling balances held on account of the Colony or money

placed on fixed deposit in a Bank, may be omitted from the

accounts current rendered by the Crown Agents.

2. In reply I am to state that the Comptroller and

Auditor General sees no objection to the adoption of your proposal, and concurs in your view that it would materially simplify the accounts as kept in currency.

3. Should your suggestion be adopted, the total

amount held by the Crown Agents on account of the Colony should

H. C. Nicolle Esq.

Audit Office Hong Kong.

be

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