(2) 9
44. Expenditure on Secret Service.
In accordance with instructions issued by the Governor, to which the Acting Auditor raised no objection, expenditure under Head 20, Sub-head 28 - "Secret Service" is now being accepted on the certificate of the Commissioner of Police.
45. Military Contribution.
The amount payable to the Military Authorities under Ordinances No. 1 of 1901 and 43 of 1935 has been verified by Audit; a statement showing how the amount is arrived at is attached (Enclosure N.). The assessment for the year 1937 is $5,662,767.81 as compared with $5,166,629.38 for the previous year.
46. Public Debt.
I. — LOAN ACCOUNTS.
The Public Debt of the Colony as at 31st December, 1937, amounted to $17,158,000.
47. The 4% Conversion Bonds (Ordinance No. 15 of 1933) amounted to $4,838,000, while the market value of the investments of the accumulated Sinking Fund at the end of the year totalled £54,325-6-11d. The Sinking Fund accounts maintained locally have been checked with the accounts rendered by the Crown Agents.
48. The amount outstanding on account of the Hong Kong 3½% Dollar Loan raised under Ordinance No. 11 of 1934 was reduced to $12,320,000; Bonds to the value of $560,000 having been redeemed during the year in accordance with Section 5 of the Ordinance.
49. The cancelled bonds and interest coupons due to the redemption were checked by the Audit Department, while the interest paid to Bond-holders was supported by the Surrendered Coupons which were forwarded for Audit.
50. Shing Mun Valley Water Scheme.
The $50,000 Imprest which had been issued to the Resident Engineer, and which was referred to in paragraph 26 of the Audit Report for 1936, was closed on the 1st April, 1937, and thereafter all payments that became necessary were made by the Treasurer.
51. The manner in which the Construction Plant and surplus stores, which had been purchased for the scheme, were being disposed of after its completion, has on more than one occasion been the subject of adverse comment by Audit. It was contended by this department that, on the completion of the works, all the plant and stores should have been taken over