1949-02-11 — Page 9

THE · CHINA - MAIL, FRIDAY, FEBRUARY 11, 1940.

Audit Report's Criticisms Of S.T. And I. SHARP U.S. ATTACK ON

¿Continued from Page B) were charged. The agreement with Mr. Phillipps subsequently lapsod," after arrangements had been made for supply direct from the North Borneo Trading Co. Ltd., and Mr. Phillipps submitted a claim for his commission and expenses.

Bry

the

have been. of the

the sale

necessitated

opening

would of profit, which which realised by to Accounts Suspense payments and receipts could be debited and credited, Suspense Accounts were opened at var. lour times.

original commodities at then cur- rent prices by HK$763,705,48,

Of these the following accounts active and are uce no longer

Peas, being cleared: Catering,

This matter, la stiff under examination and also with co Fuel Oil, UNRRA Clothing Dia-

tribution.

Tho transaction, therefore, resulted not only in an appra- clable increase in the quantity of rice available for rationing but also in a very considerablo

ences

of

Anansial isolated In a few

rice/rice barter, It is proposed that the remain-flour/rice, and

return was less than the foring accounts shall be regrouped the

the following headings original cost, but in every case and under

the lose would have been greater maxima as indicated with

Itice

if the original flour or rice had been

keld at

This current prices, phenomenon resulted from the accepted practice averaging

Gard

to considerable diacre- pancies between quantities of timber shipped and pald export in North Bornco the quantities shown in Departmental records se FO- celved in Hong Kong, Some of these discrepancies appear

to be excessive.

Army Rations

the

pense account which receipts Tations issued on repayment were credited.

An attempt was made to audit accounts of this Section but this examination had to be abandoned owing to the unsatisfaclory and incomplete state of the accounts, The Accountant General called for the Director's comments on the state of the accounts but it is

vas taken in the matter.

Dry F'uct

Goods

Cotton Yarn

Japanese Trade

$50,000,000

$15,000,000

$10,000,000

$15,000,000

$10,000,000

manfortunately impracti cable in respect a good under world allocation or where trade with any particular country must be on Government to Govern- ment basis.

of

been

or

costa le arrive at the basle ration price, which involves setting off losses on the more expensive grades against profits on the leas expensive. These apparent losses therefore were the result of lif general price polley and not of the barter operations.

Hardwood

a time when

BUDAPEST GOVERNMENT

Washington, February 9.

H.K. Broadcast The Western powers may accuse-Hungary before the United Nations of consistently violating its "Unsuitable”

peace treaty obligations on human rights, Mr. Doan' Acheson, the Secretary of Stato, said to- night,

London, February

Me. Leonard Gamman Conservativa Member, asked

In the House of Commons to- day if the Colonial Secretary, Jones, Mr. Arthur Creach knows that many of the Bri- tish Broadcasting Corpora- tion talks retransmitted by Hong Kong Radio are most unsuitable for Chinese flaten-

ors.

Mr.

**

Gammanı, who cently paid a short visit to -kong_Kong,-wanted-te-kpakkozo "What-arrangements—afa in force for consulting the pub- 1lo in the Colony about the nature of these GBC record- inge

Mr. Greech Jonce replied: that he conmuiting the Governor of Hong Kong en these points and will com- municate his reply to Gǝmmana.---Router.

Mr.

THREAT OF

It is and has always been the During the period of the Mijlt-intention of Government to divest Administration, a Section itself of its trading activities at was act up to handle the distrithe, earliest possible moment, but „bution on topdyrnandoritos.com distributior to Goverment "off" cials and employees of exseritial services entitled to free rations, of army rations provided by the Royal Army Service Corps. The

The purchase of hardwood from Section closed down on May 15,

Indo-China was decided on during 1046. after the Handover to

The establishment these the period of the British Military "Civil Government. but a Sus Suspense Accounts in theory, In

to volves the use of was opened

Government's Administration at In respect of surplus balances, and therefore there was a desperate shortage of hardwood in the Colony and requires approval by the Secre-

Siamese tenk had not been re- tary of State. But in actual fact m

lensed for the result has been that over the offered to send a ship to Prom- A local firm export. whole field, there

has substantial credit, and Govern- en through hostile territory to pick up a cargo of logs, and of- ment, by having the use of the fered Goverment qu option on the When the surplus fundin, has been able to cargo at cost plus 5%. postpone raising the balance cargo, arrived, the option was of the Rehabilitation Loan, there-taken up and the logs were paid by avoiding the heavy

ilability for at $10.01 per cubic foot for interest charges which would against the then market price of have been incurred. The Secre- $30.00. The difficulties which the No expenditure hns been

of State has been

aware Director of Audit has experienced charged to the Suspense account throughout that Hese operations in ascertaining the fact is to the and no revenue has been credit-

have been carried out. In the ultimate disposal of the timber ed sihre January, 1947,

chaotic should ease of Japanese trade, the "open are attributable to the receipts should ense pears that the

In has been state of the Stores Department at accrue to revenue in accordance necount" system with the terms of the agrement force

in the United Kingdom the time, when vast quantities of for the handover from the Brint Slogapore also, na being the rehabilitation stores were brought tish Military Administration to only mefhed whereby trade could in without documentation, and nessmen were urged yesterday Civil Government and the matter be conducted l the time: the when inadequate and temporary to go to Japan to study possible has been taken up with the A- Secretary of State hos been tail had to deal at speed with threats to their markets from a

the fusistent deniande ย Runerous throughout cognisat of our Summary

operations, which

departments for stores, This un-reviving Japanese textile indus- were in fact Attached as Annexure B is a conducted until September 1947 recognised some months ago and

satisfactory state of affairs was try." through the United Kingdom

Board of Survey appointed to Liaison Mission in Tokyo.

list und price all stores is now on the point of concluding its Inbours, Writo-off Of Canned

not known what action, if any,

countant General.

shows that the total expenditure

the

In

Ac-

Profits Not Transferred Details of the Suspense counts are not yet available, unl none of the profts have

two main reasons for this.

been

Goods

£1.5

JAPANESE TEXTILES

New York, February 10. British and American busi-

Sir Raymond Street, Chairman of the Manchester Cotton Bourd, suggested this in a luncheon ad- dress before the British Com-

Chamber of manwealth merce.

He told a press conference that the trial and sen- tence of Cardinal Mindszenty constitute a "threat to free institutions everywhere" and said the Hungarian Government must "bear full responsibility for its actions."

In a statement issued. at his weekly press conference, Mr. Acheson said: "The frases_ni_ Cardinal Mindszenty and other Hungarian Church leaders are not isolated, developments.

governmental power entirely in the hands of the mixrity Com- |munist Party, the people nf Hungary have been increasingly denied the exercise 'of their fundamental rights and free- doms."

Mr. Acheson's statement con tinued: "Parliamentary opposĺ- tion, an element indispensablo to the democratie process, has been ruthlessly eliminated, totalitarian controls of state and party have been laid like deadening hand

upon every phase of daily per- sonal existenco and the Hun-.

CARDINAL MINDSZENTY-

garian people have been divested Luthern Blahop Lajos Ordass

the

of any real independence."

and other Church leaders 11 Amplifying his sintement under Hungary. questioning. Mr. Acheson said

"The Soviet-controlled Hun- the United States is considering garion authorities seok to dia-

possibility of bringing the credit

and cogree religious Mindszenty ed Nations, case before the Unli-leadersh - Hungary to remove this source of moral resistance There это many possible to Communism. sources of action. he added, but declined, to go into detalls, saying ho docs nat wish to "think aloud" on the subject.

Moral Resistance

Mr. Сот-

Acheson described

the

Police Stato

"In thair conduct' of the сабо of Cardinal Mindszenty, the Hungarian authorities do not appear to have omitted any of the usual methods prac. tised by a police state.

summarised statement pf re- celpis, payments and balances of the Suspense arcounts maintain- ed for the various nettvides un- dertaken by the Supplies Trade

Hungarian charges that Mr. and Industry Department during

Unless the struggle by British, Selden Chapin, United States the periods May 1, 1948 to March

"Such proceedings consultats A total of approximately 600,000 American and Japanese business- Minister to Hungary, had assisted not the administration of justice 31, 1947, ang! April 1, 1947 to transferred to revenue. There are

in The cases of services surplus canned men for the world textile mar- Cardinal Mindszenty

illegal but wanton December 31, 1847

persecution," Mr. Examination of this statementtrst is that a proportion of the goods were received by the De-ket is checked, he said, it might activities as "totally false. basan- Acheron said. They had evolted i

universal condemnation and the for 1948-47 Incurred and charged {1600pts is derived from the sale partment in 1040, of which about mean "digging a plt for our un- less and outrageous,"

He said there had been no of Hungarian War Office of War

supplies,

Government and the 50,000 cases were received from doing."

must "In America, Crown

production In Suspense accounts under the

Agents under the

official communication

with Office

the bear full responsibility for its authority of the Director ex-

Government on this actions. claim the proceeds of sale. A Young Working Party relief pre-cotton goods is geared to a high Hungarian

reserves the right to the ceeded, by over $13,000,000, the claim

"In Bri- aspect of the case. in fact gramane und 460,000 cases pur-level," he continued.

The people of the United expenditure includ payment on account has in fact chased locally from the U.S. For- tain we are making great efforts total voted

In his oficial statement, the States and without question the The other been made. ing Loan Expenditure)

to Commission. raise production. Also in Jo-Secretary of State said the Hun- peoples of other freedom-loving Colony. which omounted to acute difficulty which has been ign

The latter were purchased in bulk pan the authorities want to work garian Government is making a nations are sickened and horri. $115,003,137.48 for the 'some experienced with accounting stall.

fied by these developments and perio!. In the financial year Even

It was recognised at the time that covery by large cotton exports,” ilgion and personal freedom," their train- been available,

fully comprehend the threat they Common sense and co-opera- a considerable proportion would

He linked the Cardinal's sen- constitute to not necessarily fit them

tion can and

free ing does

institutions a way out with tence with the "persecution" of everywhere."Reuter. t for dealing with commercial acquire to be written off either

because of their unsuitability

out resorting to aartein and unemployment, he sald, ade. Ing:

the of

War

the

Liquidation

1947-48, the expenditure incurred fhad Government accountante) for a lump sum as they lay, and out that country's passage to re- "conscienceless attack, upon re-

by

and

$93,000,000; the total of

the offered, until in

in the Accountant General's ac-

the

or

the Supplies, Trade Industries Department up December 31, 1947, exceeded the counting. The Department had to of their perishability. The greater total voted expenditure (including make shift with such accountants part of the canned goods written Loan Expenditure) of the Colony as it could induce to stay for off came from this latter pur- "The cotton growers of Amer!- for the same perlod by over short

periods

the on

salarles chase and were goods of

en will do better in a world of low last Colony's voted expenditure shoiva local firm of chartered accoun- Items being asparagush, beete followed by cutbacks and unem-

in August

nutritious value, principal orderly development than it we grape get a perind of excess production Was placed in full charge fruit and pineapple counts up to December 31, tants

and asked

expedite the com- to

m- root, sweet pickles, tomatoes and ployment 1947, being $88,615,125,60.

the U.S. (occupation) This comparison serves to en-pletion of statements of account. fruli mince ment. Out of a total

hope 800,000 cases received 25,000 authorities will allow the cotton Satisfactory progress is now of being made but the problem of cases or slightly over 3% were industries of the United States

Crown Agents and other considered a very low proportion wise leadership to from

Supplies, In view of the dimcult for enuned goods of this type and ranks and file by sending an ine

dustrial conditions

mission that prevalled in condition..

and pro study in fixing clated Press.

dorse the general conclusion that

it is clearly unsatisfactory that the expenditure of public funds by the Supplies, Trade and In- dustries Departinent should not

by be subject

the to control Legislature, nor receive the ap proval of the Secretary of State, and the equally undesirable

Russians Drop. A Hint To Finland

Moscow, February...10.

aeparating-War Office Supplies condemned and destroyed;-this-is and-the-United Kingdom-to-The Soviet Union wants Finland to abandon any idea

is not an easy onio

It is hoped that proft and lose the years 1945/6 completed

corollary that since expenditure accounts for

1040/7 will be and

is met from surplus balances, and early in 1940. They will be jald receipts are added thereto, the early

extent and nature of the tinun-

before Council at the first'op-

On the financial aide vialon WEE made selling prices for those pron. pective losses and

no financial

tous was incurred on the com.

plete transaction.

The figure of $249,000 quoted

cial transactions of the Depart-portunyunting dificulties have as the value of the goods written |

at March 31, 1047.

FINANCIAL

The with

their

to Japan for conference."--A530-

MYSTERY DISEASE

+

an - eve

course.

Minister now in Washington)

of joining a Scandinavan defence alliance.

This is the clear indication behind an article in the Russian

as saying that he plans on car. tain conditions to involve Fin- trade union paper "Trud" today.

The article tells Finland's Cab- land in this Northern Alliance inet (predominantly. Socialist- "under the wing of the Amori. Democrat) that attempts to turn

san militarista," "Trud" says: Finland's foreign policy into the

"It is no secret ment are not detailed in the published accounts of the Colony. indeed been such that when trade off is a token figure only; as the

political leaders in Faris, February 9.

path of direct or indirect agree that many The Accountant General has

Japan commenced to de- goods were purchased for a lump

The Renault motor factory ment with "the Anglo-American Helsinki, like the Scandinavian expansionists" are a dangerous Right Social-Democrats, support. Informed me that the depart-velop and to throw an additional sum and no financial loss was in-

curred, no real value can on an inadequate statt, gned to them.

the idea of creating, a as has called in specialists of the

soparate mental accounts kept by the Sup-burden

Parleur Science Institute 10 plies, Trade and Industries De it was considered advisable to

"Trud" says that Scandinavian Northern Alliance." more satisfactory arrange

It should also be stressed that, identify a mysterious aye disease | "expánxlonista" have not given partment have not yet been remake

Earlier, "Trud sald public to 300 of conclled with the balances in the ments for accounting than had the goods had been condemn-affecting 250

the up their attempts to "all together opinion in Finland is showing in- Accountant General's Recounts, hitherto existed. The old Jop was necessary to proceed with

ed by the Health authorities, it firm's 30,000, workmen.

a Northern alliance."

creasing resistance to "the reac- Bacze Trade Suspense

Professor Hartmann,

domestic and foreign Account their disposal Immediately both on specialist of a big Paris hospital,

"Trud" quotes Dr. Halvard tionary with the Treasury was therefore grounds of public health and to has visited the factory, to examine

Lange (the Norwegian Foreign policy of the Fagerholm Govern- SECRETARY REPLIES

closed for

ment" trading purposes, other

avoid further storage charges,

It contrasts this with the the patients and make tests. The of outstand- than the completion of salient features The

of

Not Accepted

of the earlier contracts.

disease, marked by inflammation of ous, however. There were only 18 "friendly policy" and arrangements *Memorandum by the Financial g

were mada with the Hong Kong of Audit on trade with Japan are,

The comments of the Director the eye lids and eye watering, yesterday, while in the first days no Pekkala towards the So- (extreme leftist) Cabinet of M. Secretary commenting on

was first attributed to flying cin- of the epidemic there were thic and Shanghat Banking Corpora- as he himself admits, based on in-ders, but when it became evident Audit Report are appended:

accounts on Members of the Counell are notion to keep the doubt

aware of the reasons which half of this Government free of complete information regarding it was infectious, the Renault ad-

the considerations involved. Much ministration called in experts.

The cases are now less numer- compelled the setting up of this charge us from March 18, last. Department and of, its early his Government retains the profit on of the correspondence relating to

exchange from this trade.

Japanese trade is Secret and may not yet be disclosed, but it in

jesty's Government has made with the Supremo Commander, Allied cable to follow the detailed burden of the Director of Audit's

the main Powers, an Overall Agreement system of

tho fold down: accounting

governing trade between by Colonini

Regulations, which ticism, that is, that Colonial sterling area and Japan, and that for entirely dif-Regulations have not been ad- Hong Kong has been excluded was designed ferent circumstances. It was ob- an early date to seck the cover given rise-to-some-confusion as

hered

to, and it is proposed at from this agreement.

This has vious that commercial operations

of the of the Secretary certain requirements under the of this kind, and on the scale ng approval

the various deper sterling area agreement to which involved, would require consider of State for able modification of the Regula-out in

tures from these Regulations set the Director of Audit has drawn the Director of Audit's attention such as the necessity for tions in the direction of ortho-

however made restricting Imports essentials dox commercial practice, if em-report. He has

en certain other criticisms on which do not apply to this Colony, ciency was to be public funds

Ente-

tory.

The

In the conditions which existed Secretary of State was informed common knowledge that His Ma-; after the re-occupation of the these anvangements in April,

1948.

Colony, it was clearly impracti- Government accepts

.and

guarded.ed and I feel must-comment; -

whan

at

The impilcation in paragraph 48 of the Report that this Govern- ment is not conforming with the

Payments To Revenue time

a time when a a complete breakdown. In Payments to revenue from S.T. Instructions of the Secretary, of operation was, threatened by staf- & I. in accordance with the State is based on a misunderstand- ing difficulties, authority was 1010-7 and 1947-8 estimates were ing of the position and la not ac given by the Governor, to the delayed pending sotilement. ofcepted. Director to carry on

on his trading outstanding "questions regarding activities on a commercial basis, the Department's Accounts. Pay- and to recruit his staff as best he ment of $768,339.40 in respect of

BANK CLOSING

might on commercial ratesature Personal Aunortmentşər

or 1946-7, being the actual expen- DOWN IN HANKOW

by the Department under

pay. It will be observed that the

Director of Audit has querled the the Heads fact, that certain members of the and "Other

their

meir

Hankow, February, 10/

Charges har now The Charlered: Bank of India,

stad were employed on a part-been made, and it in hoped to Australia and Chius are closing while others gavo make a similar payment in res-thele. Hankow branch`at, the eric

an honorary pect of 1947-0 in the near future, of, this mouth. The branch. Was capacity without

The Director of Audit suggests opened 20 remuneration.

years ago and had This" was : the lycans of that certain barier transactions been operated ever since except avelding a breakdown and it was rosulted in

unauthorised

sed loss of

of the war year 1941 to 1945, extremely fortunate that there public funds.

They closed were persons with the

On the financial man and neat branch lost aga

publio spirited

mide,

commercial experience, who were seeded the actual cost of the duced their staff considerably in sum received for the rich ex-Most foreign Orms have 3D- enough

PASAREA OF Anal rios, dour and magar by Hankow during the past few The operation of the Depart-1XK4086,552-30; this represents a month due to lack of busines munt ven・a commercial basis net profit and exceeds – the pat “-Beuter. ~

Sihair services.

enres a day.

60

The epidemic is not limited to the Renault factory. It has ap- Beared in other places--Reuter."

viet Union and pictures an in- creasing. Western orientation of policy, by the Finnish Govern- ment Router.

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THE HONG KONG JOCKEY CLUB

NOTICE TO MEMBERS First Extra Race Meeting,

Saturday, 12th February, 1949,

There are nine races, the First Bell will be rung at 1.30 p.m. The first race will be run at 2,00 p.m. and the last at 6.00 p.m.

MEMBERS' BADGES AND ENCLOSURE, Members and guests are reminded that they and their ladies MUST wear their badges PROMINENTLY DISPLAYED througout the Meeting.

NO ONE WITHOUT A BADGE WILL BE ADMITTED TO THE MEMBERS' ENCLOSURE.

Badges admitting non-members to the Members' Enclosure and Club., Rooms at · 810 including tax аго obtain- able through the Secretary on the written or personal intro duction of a Member, such Member, to be responsible for all chita pio.

Badges admitting to Members' Enclosure will NOT be on sale, at the RACE COURSE.

Office will close at 11 a.m. The Treasurers' Compendere and the Secretary's Office at 11.45 am. Both Offices at 1st Floor, Exchange Buliding. "

A limited number of tiffins will be obtainable at the Club House provided they are ordered, in advance from the No. 1. Boy (Tel, 27818),

NO CHILDREN WILL BE ADMITTED TO THE CLUBS PREMISES DURING THE MEETING.

PUBLIC ENCLOSURE,

The price of admission to the Publid Enclosure is $3 including tax for all persons including indies, and is payable at the Gate.

Bookmakers, Tlo Tao mon, etc. will not be permitted to operate within the precincts of The Hong Kong Jockey Club during the Race Meeting.

Refreshments will be obtainable in the Bestorant in the Pubilo Enclosure. ・・・

SERVANTS PASSES.· ́

Servants" Dassen will be issued to Private Box holders ONLY, who are requested to distribute them with discrimint

Holders of Lion and to endorse their names on the passes. such passes are not permitted in the Members Enclosure except for passing through on their duties and must remain in their, employers' standa.

www

BY ORDER,

C. B. BROWN.

Secretary.

Solar

Pressure Lanterns.

Consume LESS FUEL

Produce MORE LIGHT

Union

Ltd. mally Buil

Tal. (#) 20895 20398