CO129-575-4 Canton-Kowloon Railway 5-1-1939 - 19-6-1939 — Page 14

34

No. 268

Sir,

53510/39.

214

GOVERNMENT HOUSE,

HONG KONG.

25 APR 1939

12th April, 1939.

on

/38

Copy attached

Arad 3-

I have the honour to acknowledge the receipt of

your despatch No. 28 of 20th January, 1939, on the subject

of the suggested opening of a suspense account for the

Kowloon-Canton Railway entitled "Kowloon-Canton Railway

Suspense Account D, Workshops Suspense Account". You then stated that you doubted the desirability of the departure from the procedure for Unallocated Stores as prescribed in paragraph 8 of Lord Harlech's circular despatch of 25th → November, 1937, in the absence of further explanation as

to any special circumstances affecting the Railway

Workshops Accounts.

2. I venture to bring to your notice the following

special circumstances. This account is of the nature of

a trading account. There are charged to it in the first

place expenses of work done by the Railway for other

departments, e.g. mechanical repair work and manufacture

of tools and instruments of a mechanical nature. In such

cases the system of charging to expenditure sub-heads means that the same expenditure is shown twice over in the accounts and sometimes three times, since stores used may already have been debited to the Unallocated Stores sub- head. I should not, however, press this point particularly as the sums involved are comparatively small, having been

THE RIGHT HONOURABLE

MALCOLM MACDONALD, M. P.,

&C.,

&C.,

&C.