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is not sufficient to say that it is no longer possible to meet expenditure from the income derived from investments. If the investments or any part of them can be realised, then this should take place before assistance is sought from the Exchequer and the proceeds used for current purposes.
As regards the accounting arrangements if the assistance were in the form of a grant in aid, Treasury control within the framework of Miscellaneous 460A procedure would have to be' instituted. An annual estimate would have to be submitted to the Treasury for approval and an annual account would have to be prepared for certification and report by an Auditor and also possibly by the D. C. A. The extent to which it would be possible for such a statement to be prepared and certified is largely dependant upon the form of accounts to be kept by the Hong Kong Office in London but you will see from the minutes on file 593A. A/cs. attached that I have already taken up with D.C.A. the question of certification of a statement relating to the evacuee expenditure in Australia, which we are meeting from the Vote of Credit, and that, for the reasons given in his minute of 11.8.43. the D. C.A. does not feel able to certify this expenditure.
This would apply equally to the balance of the Australian expenditure at present charged against Hong Kong funds and also possibly to the expenditure which is being incurred through the various Consular representatives.
Some of the Crown Agents direct expenditure would, however, no doubt be susceptible to audit.
Although it might be possible to audit the London accounts in which local expenditure is incorporated, I think that the Auditor's certificate would necessarily have to be subject to considerable reservations as to the extent of the check on the authority for such expenditure.
We have so far not been called upon to make a grant of the nature required from the Vote of Credit and I think that it would be rather opposed to the normal Treasury procedure to do so. In the case of Vote of Credit expenditure it is usual for United Kingdom funds to be made responsible
for
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