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examination was made by this Office, statements from SCAP were available only up to 31.5.47 in respect of imports from Japan and up to 31.12.46 in respect of exports to Japan. It is understood, however, that the Chief Accountant of the Supplies, Trade and Industries Department was recently sent to Japan for the purpose of effecting and up to date reconciliation in this connection.
(a) Tokyo Agents.
40.
As from September, 1947, when trade with Japan was opened to private traders, Mr. J.A. Galvin was appointed as the Hong Kong Govern- ment's agent in Japan on an honorary basis on the recommendation of the Director, Supplies, Trade & Industries Department. Mr. Galvin had formerly been anployed in a temporary capacity by the Supplies, Trade and Industries Department as head of the Industries Section, but resigned his appointment at the end of July, 1947. When making his recomendation,
the Director stated that Mr. Galvin was proceeding to Japan as represent- ative of the newspaper "China Mail" and had offered his services to Govern- ment in the capacity of honorary agent in Japan. Government agreed to pay his fare to Japan and to refund to him the actual expenditure incurred by him on Government's business. It appears from correspondence between the Governor and His Majesty's Anbassador, Tokyo, however, that Mr. Galvin was also given permission to act as agent for seven local fims conducting trade with Japan, though information to this effect does not appear to have been recorded on the file at the time that Mr. Galvin's appointment was originally approved. Mr. Galvin acted in this capacity until December, 1947, when he asked to relinquish his agency and Mr. D.M. Kenrick, who was employed in a temporary capacity by the Supplies, Trade and Industries Department as Price Controller, was sent to Japan to take over from Mr. Galvin the duties of the post of Goverment Agent, Japan. It appeared at first that Mr. Kenrick was being transferred on temporary duty but the Director subsequently stated that Mr. Kenrick would not retum to his former post and a new Price Controller was appointed with effect fram the 1st of November, 1947. As this action was tantamount to the creation of a new post of Tokyo Agent within the departmental establishment, the attention of Government was drawn to the necessity to obtain the proper covering authority. Further information in this connection is awaited but it is observed that the post of Tokyo Agent has been included in footnote (2) to the Estimates for Temporary Staff of the department shown under Head 35 in the Estimates for 1948-49.
41.
Mr. Kenrick was first appointed to the post of Price Controller in the Supplies, Trade and Industries Department by the Secretary of State at
a salary of £1,200 per annum on a contract for one year. His contract was subsequently extended for six months and his salary raised to £1,400 per annum without the prior approval of the Secretary of State being obtained. The matter was brought to the notice of the Colonial Secretary by my predecessor and the Secretary of State's covering authority was eventually obtained. After the expiry of the extended period of his contract and before obtaining the Secretary of State's approval for a further extension, authority was given by the Colonial Secretary for Mr. Kenrick to draw a duty allowance, in lieu of a high cost of living allowance, of $289.33 per month with effect from the date when Mr. Kenrick's wife left the Colony to join him in Japan. Again, as a result of an enquiry by this Department, the Secretary of State's covering approval was obtained for the further extension of his contract for 6 months at £1,400 per annum. I have now enquired whether the authority of the Secretary of State for the duty allowance has been obtained and whether the necessary financial provision has been made.
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