A further re-appropriation has recently been authorised.
35. At the end of 1934 the excess of actual expenditure over the loan actually raised was incorrectly shown in the Balance Sheet as an Asset under the title "Dollar Loan Account". This was partially corrected in May 1935 and subsequent balance sheets by showing it under the title "Advances pending Reimbursement from future loan" but the Dollar Loan account still remained as a main Ledger account.
36. It was not until June 1936 that the Secretary of State's instructions were received upholding the original contention of this department that the charge against the Dollar Loan Account was incorrect, and a Journal Entry has now been passed definitely closing this account and correctly showing the expenditure as an Asset under Advances.
SHING MUN VALLEY WATER SCHEME.
37. These accounts have been satisfactorily kept and the Reconciliation of the Resident Engineer's Imprest Account ($50,000) with the books of the Treasurer has been effected quarterly.
With the approach of the completion of the scheme arrangements are being made for the disposal of plant and material and a catalogue is being prepared for distribution to likely purchasers.
CHINA COMPANY FEES.
38. The annual local examination of the Registrar of Companies Account at Shanghai was made in September and the accounts audited to date. This source of revenue continues to increase and the collections for the year amounted to $201,576 as compared with $177,867 for the previous year.
MILITARY CONTRIBUTION.
39. Following discussions between the local and the Home authorities an Ordinance (No.43) was passed during the year amending the 1901 Defence Contribution Ordinance.
Those sources of revenue which are excluded from assessment for Military Contribution are given in detail and the procedure with regard to certain quasi-commercial undertakings regularised.
A statement of the calculation for the year is enclosed (Enclosure O).