"1
chartered for that purpose at a very favourable rate. The
163
S. S. "Haimun" has been diverted to carry cement for Government Works at Penang. The S. S. "Haihong" was lent to
Enclosures $849.
2.0. 46922
the Naval Authorities to carry reinforcements from the Manchester Regiment to Vladivostock.
8.
The accounts in connection with the requisitioned vessels are kept by Mr. F. W. Cary, Expense Accounts Officer at the Naval Yard, who is also Secretary to the Control Comittee. He is assisted by a European clerk in the Naval Yard. The audit is conducted by the Government Auditor, who at present confines himself to the checking of payments and receipts, with an occasional test audit of accounts and vouchers in detail; shortness of staff rendering it impossible to do more at the present time. I shall be glad to learn whether you consider a complete audit to be necessary. It must be remembered that this Government does not accept an Auditor's Certificate as evidence of the correctness of a vessel's accounts; but that Mr. Cary checks the vouchers in detail. A complete audit would entail very heavy work, of a mature to which the Goverment Audit Staff
are not accustomed.
9.
I enclose copies of correspondence with
Colonel Thomson regarding the revised rates of hire for tramp steamers. The new rates were introduced with effect from date of requisition of the vessels affected.
10.
I may take this opportunity to acknow- -ledge the receipt of your telegram of the 3rd. October. The question before this Government was whether, when a vessel was chartered by the omers at a low rate and was sub-charter- -ed one or more times at a largely increasing rate, the Government could make arrangements direct with the last sub-
-charterer