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than the amount of the Orders advised for payment. In the opinion of
Mr. Dallin it would not be possible to maintain that the Hong Kong
Fost Office had been negligent in allowing the Canton office to retala
unduly large balances; and the Postmaster Genaral concurs in this
opinion. It does however appear to this Department that in view of the
unfavourable report of the auditor on 24 November 1919 steps might
have been taken by the Postmaster General of Hong Kong to arrange a
further chook on the accounting arrangements at Canton at an earlier
date, and perhaps their Lordships will think it desirable to invite
the observations of the Colonial orrics on this point.
Subject to any contribution towards the loss being obtained
as a result of the enquiries suggested above, the Postmaster General
will be glad to receive their Lordships" authority to write off the
deficit of ₫ 4267.58, ($4467.58 less $200 reacvered from guarantor)
the sterling equivalent of which will be about £530.
I A3,
Sir,
Your obeaint Servant,
(Sgd.) F. H. Williamson.
No. 8170/22.
Bir.
General Post Office,
Tong Hong.
29th July 1922.
I regret to inform you that there has boon a serious
defalcation in the Canton Postal agency which amounts to $4,467.58,
This defaloation was discovered on May 1st shen kr. Kilton
who had been in charge of the agency since December 1921 handed over
to Mr. Fallis.
The auditor has paid two visits to Canton and I attach copy
of his report.
The Canton agenay, sɛ you are aware, does not baze Honey
Orders, and it is therefore necessary whenevər Money Ordərs are
forwarded to that agency to be cashed, to forward at the same time
qash for the payment of those orders. It now appears that the agent
instead of paying such money, which was sent to him by cheque, lato
the Bank, cashed the chaques and paid the money over to a clerk called
Ssa Tu, whose duty it was to attend to the payment of Money Orders.
Had the money been paid into the Bank no defalcation could
have taken place.
Had the money in the custody of Sau Tu been checked from
time to time any defaleation would have been inconsiderable in amount
and would have been detected. The Agent however appears to have
been satisfied by the mere statement of the olerk that the money in
his custody was correct.
Sau Tu was dismissed by my orders and while the question
of prosecuting him was being considered, he ran away and his present
whereabouts are unknown.
The Secretary,
General Post Office,
LONDON.
The
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