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Office have been adjusted. The matter is being kept under continual observation.
Abstract Account: paragraph 4. Pay and allowances due to members of the Hong Kong Volunteer Forces for the period of the occupation and up to the dates of demobilization, and payments made after the adjust- ment of any advances made by the London Accounts Office, are being examined locally. With regard to payments made by the London Accounts Office to members of His Majesty's Forces, other than Hong Kong. Volunteer and Defence Forces, the audit examination has not yet been completed.
Abstract Account: paragraph 5- Payments made by Overseas Agents: (b) Chungking. It has been suggested to the Colonial Secretary by this Department that enquiries should be made from the British Embassy Agent in Hong Kong whether any further statements of expenditure subsequent to December, 1944, with supporting vouchers, are now available and whether vouchers supporting the Statements for the previous periods are also available. The matter is being kept in view. Abstract Account: paragraph 5 Payments made by Overseas Agents: (c) Macao, British Consul and (d) British Ambassador, Lisbon. Most of the books, accounts and vouchers of the British Consul, Macao, were forwarded by the Consul to the Accountant General early in 1948, in accordance with arrangements made by Government with the British Consul, Macao, under which it was agreed that the accounts of expenditure incurred in Macao during the war should be dissected and clarified by the staff of the Hong Kong Treasury and audited under the direction of the Director of Colonial Audit. These arrangements were agreed to by the Foreign Office and the approval of the Director General of Colonial Audit is being sought by this Department for the audit of the accounts and statements to be undertaken by this Department. In the meantime, the Acting Accountant General has prepared statements of expenditure which set out the details of payments made to, or on behalf of, Hong Kong Government officers, members of the Volunteer Forces, Civil Defence workers, and relief payments to Hong Kong domiciled persons, but which do not appear to comply entirely with the requirements of the Foreign Office as to the manner in which statements of the accounts of the Macao Consul should be compiled. The statements prepared by the Acting Accountant General have been referred to the British Consul at Macao for confirmation that they will meet the needs of the Foreign Office and, pending receipt of this confirmation, the matter is being kept in view.
Authorities for Expenditure: paragraph 10. Further receipts in respect of issues of sums totalling £750,000 by His Majesty's Treasury in the financial period under review are referred to in paragraph 77 of this report. It is understood that the question as to whether issues by His Majesty's Treasury during the period of the occupation of the Colony and up to the 30th April, 1946, are to be regarded as loans or free grants has been recently decided but information as to the decision. taken has not yet been received by this Department and the matter is being kept in view.
151. With the exception of those mentioned in this report, there are no outstanding questions, whether raised by query or otherwise, which affect, or are likely to affect, the accuracy of the Annual Abstract Account or of the Statement of Assets and Liabilities, or which are of ̈ importance, but which do not affect, or are likely to affect, the accuracy of either statement, except such outstanding questions as have been referred to elsewhere in this report.
152.
AUDIT OF OTHER ACCOUNTS.
Kowloon-Canton Railway. The final accounts of the British Section of the Kowloon Canton Railway for the financial period 1946/47 have not
44.