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operations.
(c) Paras. 21 and 22.
The purchase of hardwood from Indo-China was
decided on during the period of the British Military Administra-
tion at a time when there was a desperate shortage of hardwood in
the Colony and Siamese teak had not been released for export. A
local firm offered to send a ship to PNOM-PENH through hostile
territory to pick up a cargo of logs, and offered Government an
When the cargo arrived,
option on the cargo at cost plus 5%.
the option was taken up and the logs were paid for at $10.91 per cubic foot as against the then market price of $30.00. The
difficulties which the Director of Audit has experienced in
ascertaining the facts as to the ultimate disposal of the timber
are attributable to the chaotic state of the Stores Department at
the time, when vast quantities of rehabilitation stores were
brought in without documentation, and when inadequate and
temporary staff had to deal at speed with the insistent demands
of numerous departments for stores. This unsatisfactory state
of affairs was recognised some months ago and a Board of Survey
appointed to list and price all stores is now on the point of
concluding its labours.
(a) Paras. 25-28. Write-off of Canned Goods,
A total of approximately 800,000 cases of services
surplus canned goods were received by the Department in 1946, of
which about 350,000 cases were received from the Crown Agents
under the Young Working Party relief programme and 450,000 cases
purchased locally from the U.S. Foreign Liquidation Commission.
The latter were purchased in bulk for a lump sum as they lay,
and it was recognised at the time that a considerable proportion
would require to be written off either because of their un-
suitability or of their perishability. The greater part of
the canned goods written off came from this latter purchase and
were goods of low nutritious value, the principal items being