29. Comparing the arrears with 1934 Assessed Taxes showed an increase of $70,886 and Water Excess Supply etc. of $65,853.
The collections during the first quarter of 1936 have, however, been such as to counteract these increases and the position at the end of that quarter with regard to these particular items and in general compares favourably with the position in 1934.
PUBLIC DEBT.-$18,278,000.
30. The 4% Conversion Bonds, (Ordinance No. 15 of 1933) amounted to $4,838,000.00, and the Sinking Fund established in 1934 to £31,222. 4. 4. on 31st December 1935.
31. The Treasury record of Investments held by the Crown Agents in respect of the Sinking Fund has been verified with the Crown Agents' Accounts, together with interest due on the investments.
32. In respect of the Hong Kong 3% Dollar Loan (Ordinance No. 11 of 1934) the Public Debt was reduced during the year to $13,440,000, bonds to the value of $560,000 having been redeemed in accordance with Section 5 of the Ordinance.
The cancelled bonds and interest coupons due to the redemption were duly checked.
Interest paid to bondholders was supported by the surrendered coupons which were forwarded for audit.
LOAN ACCOUNTING.
33. A statement of Loan Expenditure as at 31st December 1935 is attached (Enclosure H).
In view of the number of irregularities in this portion of the accounting referred to in paras. 27 to 38 of last year's Report it will be as well to set out the position as it stands to date.
34. As regards the expenditure during 1935 authority to meet this from Surplus Funds was obtained by Resolutions of Council
28th March 1935
5th September 1935
$2,000,000.
$2,771,371.
both of which have received the approval of the Secretary of State, who also approved the re-appropriation of the items in the Loan Schedule as passed by Council.