No. 643.
AIR MAIL.
Sir,
GOVERNMENT HOUSE,
HONG KONG.
17th August, 1938.
18
I have the honour to refer to Mr. Ormsby-Gore's
53556/3ydespatch No. 399 of 2nd October, 1937, and to previous
correspondence on the subject of the Tung Wah Hospital.
2.
A thorough investigation has now been made into the affairs of the Corporation and a statement of income and expenditure for the year 1937 has been drawn up together with a balance sheet showing the state of assets
and liabilities on 31st December, 1937. The balance sheet
has been certified by an auditor authorised under the
Companies Ordinance to audit the accounts of companies
which keep their books in Chinese, and has been examined,
though not checked in detail, by a European firm of
accountants. I am satisifed that the statement and
balance sheet present adequately the position of the
Corporation.
3.
The balance sheet shows an excess of assets
over liabilities of $1,404,386. The assets consist
mainly of investments in house property and mortgages estimated on a fairly conservative basis at $1,783,000.
The Corporation is therefore at present far from being
insolvent, but it possesses no liquid or easily
realisable resources.
THE RIGHT HONOURABLE
MALCOLM MACDONALD, M.P.,
&C.,
&C.,
&c.