CO129-605-1 Annual Accounts- 1946-7 9-9-1948 - 14-3-1949 — Page 189

— 18-

APPENDIX 7.

STATEMENT OF ASSETS & LIABILITIES INCORPORATING LOCAL 1941 BALANCES IN COLONY'S ACCOUNTS FOR 1946/47.

SPECIAL FUNDS:-

LIABILITIES.

$

China Provident Loan & Mortgage Co., Ltd.

100,000.00

Chinese Public Dispensaries

6,000.00

District Watchmen

58,000.00

Education Scholarship Fund

57,000.00

6,000.00 227,000.00

S.C.A. Passage Fund

CURRENCY FUNDS:-

Note Security Fund

Subsidiary Note Security Fund

Overprinted Note Security Fund

5,600,000.00

1,250,000.00

400,000.00 7,250,000.00

$7,477,000.00

INVESTMENTS:-

ASSETS.

Special Funds--Hong Kong Government 34% Dollar

Loans, 1934 & 1940, and Fixed Deposits

Miscellaneous:-

227,000.00

Hong Kong Government 31% Dollar Loan, 1940 5,559,000.00

Fixed Deposit

GENERAL REVENUE DEFICIT

1,689,000.00

7,475,000.00

2,000.00

NOTE:--(1) The investments shown were recovered intact on the liberation of the Colony and include $227,000 in respect of the Special Funds detailed on the Liabilities side. The investment of $5,559,000 represents Government's holding in the 1940 Loan at face value which is below the present market value.

(2) There are additional contingent liabilities estimated at some $4,500,000, mainly in respect of deposit balances appropriated by the

enemy for which Government, as at present advised, assumes no liability.

(3) There are also contingent assets approximating to the same amount in respect of advances made mainly for war supplies on orders placed by other Governments through the Hong Kong War Supplies Board. In view of the uncertainty of recovery of these advances, these too have been omitted for the purposes of this statement.

(4) It is essential to re-establish the Currency Security Funds but in view of inevitable wastage, which must have been particularly heavy during the enemy occupation, it is not considered necessary to provide the full amounts of the notes in circulation as recorded in December. 1941. The liability now shown represents approximately 70% of the 1941 total. The coins in issue are covered by investments in the United Kingdom, which remained intact, and the liability and asset already appear in the Colony's accounts.

THE TREASURY,

HONG KONG,

15th January, 1948.

H. R. HIRST, Accountant General.

$7,477,000.00

204