A (2) 5
Legislative authority to use surplus balances during 1980 pending the raising of a loan for these works, all of which have received the sanction of the Secretary of State, was obtained by resolution of Council in September 1929.
23. The figures shown against the Shing Mun Valley Scheme and the Aerodrome differ from those shown in the Loan Statement (Enclosure J) by considerable amounts. Explanation of these differences are contained in the reply of the Treasurer to Audit Query No. 322/1930, copy attached (Enclosure N).
PURCHASE OF THREE LOCOMOTIVES FOR CHINESE SECTION KOWLOON CANTON RAILWAY, $447,722.99.
24. This asset is the outcome of an agreement made in 1929 between the Kwang Tung Provincial Government and the Hong Kong Government. No definite date or manner of repayment is provided for in the agreement but the introductory phrases state that the Hong Kong Government has been requested:
"to grant the facilities in that behalf hereinafter appearing in order that the Kwang Tung Provincial Government may eventually and as soon as conveniently may be pay for, take over and acquire the said three locomotives.
The agreement, however, provides in the meantime for the payment by the Kwang Tung Government of interest and mileage charges calculated on certain accounts specified in the agreement.
MISCELLANEOUS, $162,761.28
25. With the exception of the $40,160.15 referred to in paragraph 54 these advances are of a routine nature and call for no comment.
INVESTMENTS,
26. Two small discrepancies occur in the statements of stock certified as held by the Crown Agents and the stocks shown in the printed Financial Statement but the total value of stock held is not affected and correction will be made locally.
PUBLIC WORKS DEPARTMENT.
UNALLOCATED STORES.
27. The Balance Sheet of the Public Works Department Unallocated Stores Account is forwarded as Enclosure H and a statement is attached thereto reconciling the closing balance $547,189.03 with the amount shown as the asset $546,579.98.
The fluctuation of the dollar was responsible for this figure being in excess of the authorised Standard Stock and formal application has been made to the Secretary of State for covering authority.