CO129-443 - Governor Sir May - 1917 [7-9] — Page 171

N°

243.

Sir,

RE

44142

Ree: 5 RP 17

161

GOVERNMENT HOUSE,

HONGKONG. 17th. July, 1917.

It

I have the honour to inform you that in January lest the Acting Auditor informed this Government that he was instructed by the Director of Colonial Audit to request that, in future, the Securities deposited by the local Banks with the Crow Agents, as security to the Government, should be brought into the accounts and duly recorded on both sides of the Statement of Assets and Liabilities. The Auditor subsequent -ly contended that the local deposits by the Banks should be

treated in the same way.

2.

These deposits are not cash and are not in

the same category as funds belonging to the Government or sume

for which the Government is liable, and the practice of includ-

-ing them in the statement of Assets and Liabilities does not

appear to obtain in the Straits Settlements or Ceylon. For

these reasons, and as I had received no instructions from you

on the subject, I caused the Auditor to be informed that the

Government saw no sufficient reason for altering the present

system of keeping the accounts of the Colony.

3.

Mr. Dallin has now addressed a letter to

the Government of which I enclose a copy, and I should be glad

to receive your instructions in the matter.

I have the honour to be,

Sir,

Your most obedient, Humble servant,

# Governor,&c..

RIGHT HONOURABLE

WALTER LONG, M.P.,

ko...