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170 respectively (i) the total cost of the

Canton-Kowloon Railway from ita com-

-mencement to the 31st December 1908

and (ii) the total repayments made by

the Viceroy of Wuchang, on account of the Loan, up to the same date.

4. The total expenditure on Rail- way, as shown by the Railway Construc- tion Books, to 31st December 1908 was $6,251,639.25. I am informed by the

Local Auditor that the difference be-

tween this amount and the sum of $6,378,691.01 recorded in the Treasurer's Account is due to large transfers and adjustments in respect of exchange

made early in 1909.

5. One of the outstanding ques-

tions referred to in paragraph 11 of my Report on the Account of 1907 was on the subject of the practice of cal- culating increments from the first day of the month in which such increments fell due irrespective of the exact date within the month on which the increase

of salary commenced.

I have recently been informed that the Secretary of State refused his sanction to this practice which has been discontinued since 30th March 1909, but no recoveries in respect of any such overpayments have been made.

6.

The remaining outstanding

questions

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