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3.

343

Ca. 31627

expenditure to be furnished by Hong Kong in respect of the period subsequent to 1 Jamary lest, during which the Post Office of the Colony temporarily retains control as the Agent of the Imperial Post Office.

The sum of £2818.5.0. for the Quarter to 31 March 1911 referred to in the letter of the Governor of Hong Kong dated 5 July last of which a copy was enclosed in the Colonial Office letter No. 24775 of 5 August includes £150 in respect of this Agency payment.

The Hong Kong contribution to the subsidy for the Peninsular and Oriental service has been paid on the old basis up to the end of June last. When the question of payment for the current Quarter arises, the Crown Agents will be requested by this Department to make the recessary deduction for the amount overpaid, in respect of the Agencies, from the 1st of January last.

5. Future audit of Agency Accounts (Colonial Office letters of 13 January 1911, No.37766/10 and of 29 May 1911,

Zev No. 16515/1911 with enclosure.)

The Postmaster General roserves for further

consideration the question of auditing these accounts after Hong Kong has ceased to con' rol the Agencies: but he accepts

in principle the proposal that, if the Imperial Administration

should require assistance in this respect from the Hong Kong

Auditor, the Colonial Treasury should be paid the value

of such services. In the meantime I on to request that, so

long as the Colony retains control of the Agencies, the

Auditor should continue to exercise the same check as

hitherto upon revenue and expenditure.

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