CO129-568-7 Report to Director of Colonial Audit- 1937- queries and correspondence 24-10-1938 - 13-7-1939 — Page 14

No. 303.

Sir.

5368438

کچھ

GOVERNMENT HOUSE,

HONG KONG,

25th April, 1939.

14

I have the honour to refer to your despatch

2 No.453 of 23rd December, 1938, on the subject of the

report of the Auditor on the accounts of Hong Kong for

the year 1937 and to request further consideration of

the question of the treatment of securities deposited

by insurance companies in accordance with the local

ordinances. You stated in paragraph 2 of your despatch

that you would prefer that such securities should be

included in the Colony's statement of assets and

liabilities. The securities so deposited consist of

fixed deposits with local banks, British and other

Government securities and mortgages on local property (mortgages will not be accepted in the future as new

deposits, but those at present deposited will no doubt

be continued to be so held for some years to come). Of

these securities only the suns placed on fixed deposit

with banks are at present included in the Colony's

statement of assets and liabilities and it seems

difficult to draw a logical distinction between these

deposits and the Government securities and mortgages

which are also deposited for precisely the same purposes

under the local ordinances. The fixed deposits are not

strictly deposits with Government in that the cash is

Sc

THE RIGHT HONOURABLE

MALCOLM MACDONALD, M.P.,

&c., &c., &c.