Page 14.
D.
OTHER SECTIONS
(a) Catering Section
53.
On the re-occupation of the Colony, two hotels owned by the Hong Kong & Shanghai Hotels Ltd., were requisitioned by the British Military Administration and these remained under control until the 15th June, 1946, when they were dc-rcquisitioned. The catering at these hotels was also undertaken by the British Military Administration and continued after the handover to civil government until the 1st of June, 1946, and responsibility for the accounts in this connection was assumed by the Catering Section of the Supplies, Trade and Industries Department; receipts and payments being accounted for through the Catering and Accommodation Suspense accounts in the Accountant General's accounts. The Section was closed with effect from the 1st of June, 1946, but in accordance with the terms of the agreement in connection with the handover from the British Military Administration to Civil Government, outstanding charges had to be met by, and outstanding revenue accrued to, the Civil Government.
54.
Examination of the revenue accounts up to the date of de-requisitioning of the hotels revealed a number of unpaid hotel bills owing by former residents. Certain collections made by the Hong Kong & Shanghai Hotels Co. Ltd. in rospect of these bills after de-requisit- ioning were paid over to Government, but outstanding bills to an amount cf $4,945.17 still remain unpaid. The matter was brought to the notice of the Accountant General by my predecessor, who expressed the view that the number of unpaid accounts indicated that the arrangements for the collection of hotel charges were either ineffective or were not energetically applied.
55.
As the hotels were not de-requisitioned until 15th Junc, 1946, the final settlement with the Hong Kong & Shanghai Hotels Co. for the period of the requisitioning became the responsibility of the Civil Government. It appears, however, that the arrangements in this connection were undertaken on behalf of Government by an Officer of the Accountant General's Department, and not by the Supplies, Trade and Indus trics Department. It is observed that, in arriving at the settlement, the amounts due to government in respect of rations, etc. have been offset against amounts due by Government for rent and certain counterclaims in respect of breakages, etc. made by the Hotels Company, and that a "final claim" sent by the Accountant General in April, 1947, showing a net balance duc to Government of $27,140.03 was offset by counter-claims by the Company amounting to $60,837.83. whether a final settlement has yet been reached, but on the 11th of
It is not known September, 1947, the Accountant General wrote to the Hong Kong and Shanghai Hotels Ltd. to confirm a verbal "final agreement" to the effect that Government would pay the Company $12,000, on condition that the Company returned "200 iron beds and mattresses to the Government Stores." matter is still under investigation by this Department, and I have not yet been informed of the authority for the terms of the proposed settlement.
56.
it the 31st of March, 1947, the balances on the Suspense Accounts, according to the Accountant General's récords, were as follows (Sec Annozure B):-
The
Catering Accommodation
Debit $52,600.36 Credit $221478.24
and the only transaction recorded in the Accountant General's books fuom the 1st of April, 1947, to 31st December, 1947, is a receipt of $24 which has been credited to the Accommodation Suspense Account.