b
<
No.
COPY.
55.
Confidential.
Jonclosure 1.
Audit Office,
Sir,
Hongkong, 2nd. June, 1911.
178
I have the honour to request that you will for-
-ward this letter for the information of His Excellency
the Governor.
2.
With reference to His Excellency's reply to my
minute of 22nd. May, 1911, contained in the Confidential C.S.0.
No. 1 in 4244/06, His Excellency's reply is "No" to my Query as
to whether the "losses", i.e. 7% to 10% on the sales of Sub-
-sidiary Coin by tender, has been reported to the Secretary of State. In my opinion this matter should have been reported to the Secretary of State and his sanction definitely obtained for the sale by tender of the accumulated Subsidiary Coin.
3.
The sale by tender of the Subsidiary Coin at a loss of 7% to 10% is practically writing; off 7% to 10% off the assets of the Colony, therefore I am of opinion that the procedure is contrary, to Colonial Regulation No. 311.
4.
The present procedure of selling the Subsidiary Coin would appear to me the adverse policy of demonetization, the policy of demonetization was apparently sanctioned by Lord
Elgin in his Confidential Despatch of the 18th. June, 1907, and has apparently the sanction and approval of the present Secretary of State, as he has approved a sum of $75,000 for the Redemption of Subsidiary Coin during the financial year 1911, therefore the present policy would appear to be contrary to the policy sancti- -oned by the Secretary of State (see Hon. Colonial Secretary's minute of 20th. April, 1911, contained in Confidential 0.9.0.
1 in 4244 of 1906.)
5.
It appears that it is proposed to write off the
the "losses" on the sales of(Subsidiary Coin against the vote *Redemption of Subsidiary Coin", this is contrary to Colonial Regulation No. 301, therefore if it is proposed to adopt this procedure, I must request that the sanction of the Secretary of
Tuly
19609
07
State
No comments yet.
Private notes are available after approval.