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addition, the Government has made claims on the Organisation

for arrears of hates, kent and retrol Tax amounting to

approximately 453,000.00, for which a sum of 4221p99.20

only has been provided in the accounts of the Organisation,

since the matter is still subject to negotiatión.

4. In this connection, the Director of Audit comments

that it is not clear whether the conditions of the scheme are

being observed, since it appears that if the Organisation has

to pay Rent, Rates and Petrol Tax, it will result in a

reduction of the funds available to the Organisation which

could be utilised for other expenditure. He adds, however,

that he is seeking further information from the Hong Kong

Government as to the status of the Organisation.

.

5. With reference to paragraph 2 of my last Report, the

Director of Audit states that detailed estimates covering

expenditure chargeable to Colonial Development and elfare

funds were not prepared for the year 1949–50. He adds that

he is in communication with the Hong Kong Government about

the matter.

(Signed) J. L. WORLLEDGE

Lirector General of Colonial Audit.

13th March, 1951.

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