CO129-590-9 Opening of temporary 'Unallocated Stores Account' 16-12-1940 - 4-4-1941 — Page 4

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XX. SECRET.

My Lord,

12 FEB 1941

C. O. REGY

GOVERNMENT HOUSE,

HONG KONG,

16th December, 1940.

I have the honour to request Your Lordship's

covering approval for the opening of a new and temporary

"Unallocated Stores Account", subject to a maximum of

$250,000, and for the charging to Expenditure of a sum not

exceeding this amount, in respect of emergency stores to be

held by the Public Works Department at a number of central

points for the purpose of defence.

2.

It is

At various places special depots have been established

for the storage of materials and other requisites for

demolition, removal of debris, repair and similar services

which may become essential and urgent in an emergency.

proposed eventually to charge the cost of any such stores which

may be used to the service for which they are utilised, whilst

it will from time to time be necessary to issue some of the

materials for normal purposes, to prevent their deterioration,

and to replace them as and when possible. These emergency

stores, therefore, are largely in the nature of "Unallocated

Stores" and the requisite steps have been taken to see that

adequate records are kept on Unallocated Stores lines, modified

where necessary to meet the peculiar and urgent nature of these

stores. At the same time an "Unallocated Stores" account, on

the lines of that in force for the Central Government Stores, is

proposed and I seek Your Lordship's approval for the opening of

this account.

3.

It is, of course, necessary to charge to Expenditure

the cost of stores acquired and held in this manner. The

alternative of opening a "Suspense" account has been considered

but I am advised that such a course would be contrary to the

THE RIGHT HONOURABLE

LORD LLOYD OF DOLOBRAN,

&c., Ecc

&C.

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principles underlying the Colonial system of accounts

whereby the "General Revenue Balance" represents free

cash and readily realizable assets only. It is

proposed therefore to charge the amount concerned to

a new Sub-head of Head 32, War Expenditure, namely Sub-

head 11, Emergency Stores. To date a sum of $100,000

has been provisionally authorized by Special Warrants

(Special Warrants Nos.259 and 367 for $55,000 and

$45,000 respectively) but in view of the need for

secrecy no application for a supplementary vote has

yet been placed before the Finance Committee of the

Legislative Council.

4.

It will doubtless be appreciated that the

proposed debit to Expenditure represents not so much

an actual and immediate diminution of the Colony's

assets as a temporary immobilization of resources to

the extent of the value of the stores held. Only when,

if ever, the stores are used for the purpose for which

they are primarily held and not for normal purposes

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will any real diminution of assets occur.

I have the honour to be,

My Lord,

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Your Lordship's most obedient, humble servant,

Muonion Едный

Officer Administering

the Government.

age 5

age 5

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