1

.DE

Copy.

No.60.

Sir,

Audit Department,

Hongkong,

17th October, 1924.

205

I have the honour to submit for the information of His Excellency the Governor a copy of ar. Dallin's report en the result of his recent complete Stocktaking of the Medical Stores, connected with drugs and instruments, when the Stock Book balances were verified with the actual Stock balances.

On October 3rd Dr. Addison, Principal Civil Medical Officer, telephoned to me stating that he considered that the medical Stores were in an unsatisfactory condition, and the matter required immediate investigation. ur. Dallin and Mr. Maughan beth proceeded the following day to make the necessary investigations, and finding affairs in such an unsatisfactory condition, it was deemed advisable to take complete stock of medical drugs and instruments.

2.

Mr. Dallin's report, paragraphs 4

-

7, discloses

viz:-

a very serious and unsatisfactory state of affairs

A. Falsification of the Medical Store Accounts by Mr.

Cable by the use of fictitious issue notes, with the connivance of ur, Shand, which the latter admits.

B. The removal of 2 lbs Morphine from Store without

authority.

C. Statement of attached Stocktaking, especially items found deficient on pages 10, 11, 13, 14, and 19.

3.

The Honourable

The Colonial Secretary,

Hongkong.

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