9, PORTLAND PLACE,
JERSEY.
6th June, 1901.
Sir,
I have the honour to acknowledge receipt of your letter No.18632/1901 of the 1st inst., forwarding for my consideration a copy of a despatch from the Governor of Hong Kong on the subject of the system of accounting for Stores and Materials for the service of the Public Works Department of that Colony and asking for an early expression of my views on this matter.
2. This question was one of the first to which I called attention shortly after my arrival in the Colony in 1890 and my views will be found in a joint memorandum, submitted to the Government by Mr. Chadwick and myself in that year, a copy of which should be on record either at the Colonial Office or in the Office of the Comptroller and Auditor General.
Objection was taken to the views set forth in the above-mentioned memorandum by the Secretary of State and the Comptroller and Auditor General on the grounds that: (a) Anything in the nature of a suspense account was opposed to the general principles of Government accounting. (b) That the keeping of a suspense account gave power to the Governor to expend money without first obtaining Legislative sanction.
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