Copy.
Colonial Audit Department,
Reference Sheet No.7/1922.
▸
58, Victoria Street,
London, S. W. 1.
205
3rd July, 1925.
To
The Acting Auditor, Hongkong.
Adjustment of Exchange Account.
In my Reference Sheet No.6/1922 I requested that
*a full explanation may be furnished of the purpose and "operation of the Adjustment of Exchange Account" which
appeared for the first time in the Annual Abstract Account (below the line) for the year 1922, and again in 1923, "with "special reference to the provisions of Colonial Bagulation 345" Mr. Phelips' reply, dated the 20th of February, 1925, quoted the reply of the Treasurer in which he mentions Secretary of State's despatch No.116 of April 21st, 1922, as the authority for the procedure in question, and states that the Adjustment of Exchange refers to the Dollar Exchange which appears in the Balance Sheet at the end of each financial year,
The Secretary of State's despatch quoted by the Treasurer conveyed the concurrence of the Secretary of State to the proposal which was made by the Officer Administering the Government that the sterling cost of the Investments
should be brought into the Annual Account converted into
dollars at the average rate of exchange ruling from the 15th
of November to the 15th of December but I cannot construe
this as being any authority for the contravention of Colonial Regulation 345.
The facts appear to be that up to the end of the
year 1921 all gains or losses on the dollar exchange were
carried