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HONG KONG LEGISLATIVE COUNCIL.

Causeway Bay to Kowloon has released the present Polo Ground as a Recreation Ground for the use of His Majesty's Navy.

As regards the new Government House and City Development, the Unofficials approve generally of the proposed scheme but would venture to advocate:

a

(i) That the new Government Offices should contain

suitably large room for H.E. the Governor to interview people, especially as his present Office in the present Government House will then no longer be available.

(ii) That room for the Lending Collection Library and other books removed from the City Hall Library will be found in the new City Hall.

We note with regret that it is proposed to drive a new road of apparently much greater width than the present right of way on the North side of St. John's Cathedral, which new Road, by its greater encouragement of motor traffic, would tend to interfere with the quiet which is so necessary to the Services of the Cathedral.

Auditor's Report.

The Acting Auditor's Report for 1932 (in addition to raising some points of technical accounting) mentions two points upon which we feel bound to comment specifically.

The first and most important point (see paragraph 54 of the Report) is the loss of $314,447.02 which the Government has suffer- ed on a sterling contract for remittances to the Crown Agents for the Colonies.

In connection with this loss the Auditor reports:-

"The Government has been required by this Department to obtain the Secretary of State's covering approval for making forward sterling contracts, as this is a departure from the recognised Treasury practice. In connection with. the loss this contract, the Government has also been requested by this Department to ask the Treasurer how he has shown this loss in his account, but no reply has been received. Further, there does not appear to have been any notification to this Department of the signing of this contract".

The Unofficial Members would be glad if the Honourable Colonial Treasurer would reply to the statements of the Acting Auditor.

Also, in connection with paragraph 53 of the Auditor's Report, we should be glad to know from the Honourable Acting Director of Public Works why a penalty of only $1,820 was enforced against the contractor in question instead of the full penalty of $5,740,

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