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2.
5.
Enclosure 2.
16773
270
As regards Mr. King's letter
Read 4 MAX 12) Financial information as to revenue and expenditure for years
1908, 1909, 1910, is given here with as far as possible. (Statement C). Accounts have been kept separately since January, 1911.
As regards audit of Agency accounts the Local Auditor ceased auditing them from lat. January, 1911. Previously the Auditor or his Assistant used to visit Shanghai and the principal Agencies yearly and the small agencies about once in two year At present there is no proper check by periodical inspection of balance of Cash and Stamps &c. The Agencies accounts are checked as far as possible at Hongkong by the Post Office it-
-self.
6.
Statement attached (A).
7.
Statement at ached (B). The valuation was made by the
various Postal Igents, they were instructed to value fumi-
I.
II.
-ture etc., with due regard to depreciation.
Memorandum A.
Statement given) (C).
Statement given)
Memorandum B.
Information given
(D).
Character and Capacity of Postmaster and Chief Clerk.
As regards Mr. Solly, the Postmaster, he is an energetic and hard working officer, with full knowledge of all postal work required for a branch office. He started in the Police Force at Hongkong, and was in the subordinate service in Hongkong. The Postal Agents at the majority of the Agencies are Vice- -Consuls and Consular assistants belonging to the Consular Service. It would be doubtful if Kr. Solly could exercise supervision over gentlemen in the Consular Service. Similar difficulties would occur, and have occurred, if he had
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