CO129-605-2 Annual Accounts- 1947-8 22-7-1949 - 20-9-1949 — Page 17

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the notes said to be in circulation on 25th December, 1941.

the necessary adjustment is being made in the subsequent

accounts.

6.

With reference to paragraph 25 of my last Report, the

Director of Audit states that the loans of $250,000,

together with an additional amount of $20,000, to the

Fisheries Co-operative and $480,000 to the Hong Kong

University have now been charged to expenditure in the

accounts of the year 1947-48, and are included in the

Statement of Outstanding Loans Payable to the Colony as at

31st March, 1948, (statement 5 of the Accountant-General's

Report).

AUTHORITIES 7.

FOR

The Director of Audit states that, at the date of his

EXPENDITURE report, he had not received a copy of the Detailed Statement

of Expenditure as required by Colonial Regulation 322.

8.

So far as I am aware, the items of additional

provision covered by Special Warrants Nos. 140-322 have not

yet been included in a Schedule of Additional Provision

approved by the Legislative Council and the Secretary of

State, nor has a Supplementary Appropriation Ordinance

covering excesses on Heads of Expenditure in the Account as

rendered yet been enacted.

This includes the amount of

9. It has now been decided that all Advances made prior

to and after the establishment of Civil Government in Hong

Kong shall be treated by His Majesty's Government in the

United Kingdom as free grants.

£750,000 to which reference was made in paragraph 16 of my

last Report. It is understood that the decision of the

Secretary of State in this matter was conveyed in a "Hong

Kong Statement" issued by the Colonial Office Press Section

dated 20th April, 1948.

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