Secretariat file 16/89/49.
54120/5/1948
SAVINGRAM
To the Secretary of State for the Colonies.
From the Governor, Hong Kong.
st
Date
21
August, 1950.
No.
904
16
1949-50 Estimates, Stores Department.
Unallocated stores.
The finalization of the 1949-50 account has revealed a net balance of $4,949,372 instead of the estimated figure of $2,000,000 between the cost of unallocated stores and the value of issues to other subheads and other services (Head 38 sub-head 25).
2.
The excess of $2,949,372 is entirely occasioned by the stocks of steel which were received and paid for during the year, on account of indents placed in previous years. As a result of the grave shortage of steel in the period 1946-48, orders placed through the Crown Agents, were subject to serious delay. As no reinforcing steel had arrived at the time when it was required, it became necessary to resort to local purchase in order that the erection of urgently needed blocks of Government quarters should not be delayed. Indents on the Crown Agents were not cancelled immediately as it was hoped that the steel would come forward in time for use in subsequent blocks of flats. This hope was not realised and unfortunately the cancellation of a number of indents was overlooked. Consequently for the present we are over-stocked with steel which will of course be available for requirements in the current and subsequent financial years.
3.
Finance Committee has approved a supplementary provision of $2,949,372 under Head 38 sub-head 25 and your covering approval is requested in accordance with your despatch No. 302 of 25th September, 1948.
CGFS:RMH:IS
پیسی
H. R. & PRICI 30 AUG 1950' REGISTRY
+4