J

Secretariat file 40/2321/48.

JES

SAVINGRAM

To the Secretary of State for the Colonies.

From the Governor, Hong Kong.

Date

19th

January,...1951................

No.

81

Supplementary provisions 1948-49.

Stores Department

-

Collection and storage

of sand.

2.5

54126/5/48

4

53535/49

The Director of Audit has pointed out that your authority was not obtained, in accordance with your despatch No.302 of 25th September, 1948, for a further supplementary provision of $250,000, in addition to the supplementary provision of $1,000,000 authorized in your savingram No.371 of 11th April, 1949, under Head 34 subhead 20 in the 1948/49 account.

2.

It was considered, at the time, that reference to you was not required since the further provision of $250,000 was within the limits set out in your despatch under reference for recurrent expenditure. In other words, it was assumed that the original estimated provision of $1 million had, as a result of your approval of supplementary provision for a further sum of 1 million been amended to $2 million and that the additional $250,000 did not therefore require your sanction.

The Director of Audit takes the view that any additional expenditure in excess of the provision made in the -approved estimates must be referred to you if the limits set

out in your despatch are exceeded, even though part of the excess may have received your approval on a previous occasion. I would be grateful for a ruling on the correct interpretation of paragraph 3(a)(ii) of your despatch No.302 of 25th September, 1948, with particular reference to this point.

3.

4.

19.00.

10

1450

I have already in my savingram No.404 of 11th April, 1950, raised the question of the necessity for obtaining your approval for supplementary provisions which are off-set, as in this case of sand, by corresponding revenue. You indicated in your savingram No.522 of 24th May, 1950, that you would address me on this subject but no further communication has been received. I trust that you may find it possible to authorise the waiving of reference to you in these cases,

RMH:IS

my

2A JA 195;

!

+

258

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