-5-
17
Assets over Liabilities, as shown in the Hong Kong London
Accounts Office Balance Sheet at the 30th of April 1946,
(£412,896. 0. 3d.) and the excess of Liabilities over Assets
(Ø 2,636,066.57) taken over from the British Military
Administration. A further debit of $ 2,000 to the General
Revenue Balance Account in March 1947, in respect of the
1941 local balances referred to in paragraph 8 (iii) above,
has been included in the item "General Revenue Account
Deficit during 1945-7 - 3,482,834.74" in the Statement
of Assets and Liabilities, the actual deficit as revealed
in the Annual Abstract Account being 3,480,834.74".
12.
Included in the liability "Suspense $26,600,399.04*
is a credit balance of $1,650,225.46, representing duty
charged in 1946-7 on sales of dutiable commodities which were
imported for and sold by N.A.A.F.I. I understand that this
account was cleared at the end of July 1947, (when the credit
balance was 1,177,463) by a payment of 250,000 to the
Services for Welfare purposes, and the transfer of the
remainder to Colony Revenue.
13.
Included in the nett liability "Suspense
☀ 26,600,399.04* are a number of suspense accounts showing
a nett credit of 40,822,513.20, relating to the transactions
of the Supplies, Trade and Industry Department. In connection
with this Department, the Director of Audit reports that on
the handover of the administrat on of the Colony by the
British Military Administration to Civil Government on the
1st of May 1946, the Supplies, Trade and Industry Department
was formed to continue the functions performed by a similar
branch of the British Military Administration, and was
authorised by the Governor to be run as a commercial concern.
The Director of that Department was given considerable
latitude in the administration of the Department and the
normal regulations for financial control were, to all intents
and purposes, dispensed with, although the authority of the
Secretary.