A (2) 12
The above represents the amount expended on additional works the cost of which it is proposed to meet from a new loan. The authority for the expenditure is given in paragraph 28 of this report.
65. Building Loans. ($337,922.63)
This represents the outstanding amount of loans, mostly to Government officials, made for the purpose of building their own residences. The balance of this account at the end of the previous year was $846,060.70. The greater part of the reduction is due to the repayment of a loan of $500,000.
66. Trade Loan Outstanding ($295,493.00)
A statement (Enclosure M) giving details of the Trade Loans outstanding as at 31st December, 1937 is attached. These Loans are secured by mortgages to Government, but it will be observed that the total amount of the unpaid loans is more than covered by the Trade Loan Reserve. The latter amounted to $336,689.27 on the same date, although the sum of $500,000 was transferred from Reserve to Revenue (Head 9 Miscellaneous Receipts) in June, 1937, as provided for in the 1937 Estimates. Reference to a proposed transfer from Trade Loan Reserves was made in paragraph 11 of the 1935 Audit Report and is also dealt with in the Director of Colonial Audit's letter No.3458/1 of 22.10.37.
The amount of Trade Loan interest outstanding on 31st December, 1937 was $110,548.69 as compared with $112,748.69 at the end of the previous year.
67. Unallocated Stores (P.W.D.) ($486,938.40)
The book value of these stores at the end of the previous year was $529,595.63. A statement (Enclosure K) showing how reconciliation has been effected between the balance of this account in the books of the Accountant-General, and that shown in the Public Works Department records, is submitted herewith. This statement, and also the Stock Sheets, have been verified by Audit.
68. Maximum balance of Public Work Department Stock
In a despatch, No.113 of 17th March, 1937, the Secretary of State approved of a sum of $700,000 being fixed for the year 1937 as the standard stock of the Public Works Department, other than for stores allocated for particular works.
69. Unallocated Stores (Railway) ($121,552.45)
The maximum standard stock fixed for the Kowloon-Canton Railway (British Section) is $175,000 (Secretary of State's despatch No.255 of 30th June, 1933) and this figure was not exceeded in 1937. A statement showing how reconciliation has been effected between the amount shown in the Accountant-General's books and the departmental records is forwarded (Enclosure L). This statement, also the Stock Sheets, have been examined by Audit.