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No. 333
In any further correspondence on this subject, the above number should be quoted,
and
the communication should be
addressed to
"The Comptroller and Auditor General,”
EXCHEQUER AND AUDIT DEPARTMENT,
ICTORIA EMPAN
B78905
LONDON, E.C.
27
Mary WAY ONO 7.
Sir,
642
I am directed by the Comptroller and Auditor General to enclose, for the information of the Earl of Elgin, a copy of a letter, dated the 19th ultimo, received from the Local Auditor of Hong Kong, reporting that, after consultation with the Chief Resident Engineer, the Colonial Treasurer and himself, with reference to the audit of the accounts of the Kowloon-Canton Railway, the Governor of the Colony had decided that an Examiner of Accounts and an additional Assistant Auditor were necessary for this purpose, and that he had accordingly recommended these appointments to the Secretary of State.
2. In so far as these recommendations affect the Local Audit Department the Comptroller and Auditor General assumes that Lord Elgin would desire to be furnished with his opinion regarding them, and, in this view, I am to say that while he entirely concurs in the opinion expressed by Mr: Phelips as to the necessity for an intermediate departmental Audit con- ducted under the direction of the Railway Authorities, - a requirement which may perhaps justify the proposed appoint- ment to the Railway Staff of an Examiner of Accounts, he is not, as at present advised, prepared to concur in the opinion that the local Audit Staff requires strengthening in the manner proposed.
3. It is of course important that the Railway Construction Accounts should be promptly and carefully audited, and it will Under Secretary of State,
COLONIAL OFFICE.
moreover
A. D. Forn Th.
WB & L (x)-52369—1000-11-6