A (2) 5
# CHINA COMPANY FEES.
30. The annual local examination of the Registrar of Companies Account at Shanghai was made in August, and the accounts were audited to the 30th June, 1936. The Revenue collected for the year amounted to $170,966 as compared with $201,576 for the previous year.
# MILITARY CONTRIBUTION.
31. A Statement of the Calculation of Military Contribution for the financial year under review is enclosed (Enclosure O).
# POST OFFICE.
32. Since 1935 correspondence has passed between the Audit Department and the Postmaster General as to firstly, the late submission for audit of the Money Order Balance sheets, and secondly, the advisability for the prevention of fraud of compiling outstanding money orders in a bound register rather than in loose sheets of paper as has been the practice heretofore. No action was taken until Audit again referred to these points when the 1935 Balance Sheet was presented on January 5th, 1937; but the Postmaster General has now given an assurance that these two matters will at once be rectified in accordance with the Audit submission.
# IMPERIAL POST OFFICE.
33. The Monthly Accounts current with the Imperial Post Office have been audited monthly, and have been accepted by both Post Offices.
The Stocks of Imperial and Local Postal Notes in the Postmaster General's custody have been checked and verified.
# STAMPS IN PAYMENT OF POSTAGES ON CIRCULARS, ETC.
34. On the submission of Audit a stricter control over the supervision and the final destruction of stamps used for other than purely postal purposes has been adopted by the Post Office. This control effectively destroys the philatelic value of the stamps.
# SUB POST OFFICES.
35. A clerk in a Sub Post Office absconded, leaving a shortage of $50.07 in his Stamp Imprest. With the exception of 7 cents the loss was covered by his security.
# RADIO OFFICE.
36. A clerk in the Radio Office's associated Shroff absconded, leaving a defalcation. The sum involved was $4,461.12.
The circumstances have been fully reported to the Secretary of State by H. E. the Governor, and reported to you in Audit Letter No. 29/27 of the 22nd March, 1937.