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No. 784.

15

11-137

Separately.

Awok.

Sir,

WOD

:

GOVERNMENT HOUSE,

HONG KONG.

24th October, 1938.

With reference to my despatch No. 712 of 22nd

November, 1937, I have the honour to forward twelve

copies of the report to the Director of Colonial Audit

of the audit of the accounts of Hong Kong for the year

1937.

2.

The report appears generally to disclose a

satisfactory state of affairs, as in the past, but I

should like to comment on the following points:-

(a) Paragraph 35. The Auditor mentions in

connection with the royalty payable by one of

the transport companies that the certificate of gross receipts has been qualified owing to the non-production for audit of an essential

document of account, i.e. a cash book. As a

result of correspondence with the company this

matter has now been satisfactorily settled and

the cash book is being produced to the auditor

approved by Government.

(b) Paragraphs 51 - 56. The Auditor comments on

the arrangements for the disposal of the stores used in connection with the Shing Mun Valley

Water Scheme. On the completion of the

construction an arrangement was entered into with Mr. Gifford Hull, the Resident Engineer,

THE RIGHT HONOURABLE

MALCOLM MACDONALD, M.P.,

&C.

&C.,

&c.,

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