CO129-566-3 Canton-Kowloon Railway 4-4-1938 - 20-1-1939 — Page 20

CO129 Colonial Office Hong Kong Records 理藩院香港檔案 All

Minute in 53510/1938.

20

Sent

(waft & 34)

Mr. Gent,

I have not heard anything from the Auditor

about this; and I am afraid that I do not altogether

understand what accounting procedure Mr. Walker

contemplates in his last paragraph.

By "net

receipts", does he mean the 50% which is charged to

the Chinese Section in addition to the cost of the

stores used and the wages of the workmen employed

on the job? That 50% presumably is intended to

cover the cost of supervision etc. (such as salaries.

of foremen etc.) borne on ordinary railway votes,

so it is not all profit.

As the circular despatch of 25th of November

1937, which laid down the new system of Col.

Government accounts, though it just mentioned

Manufacturing Suspense Subheads in paragraph 8,

did not deal in any detail with the manner in which

the system was to operate in such cases, it might

be well for the Secretary of State to explain to

the Governor the procedure which is to be

substituted for the old Manufacturing Suspense

Account

May I have two copies of the despatch which

is sent?

A.). Harding

Director of Colonial Audit.

38.

23-12-38

Page 20Page 21

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