CO129-606-3 Treasury control over Hong Kong finances 14-1-1949 - 1-12-1949 — Page 23

No. 457/79/49

(COPY)

Audit Department,

Hong Kong.

11th April, 1949.

22

Sir,

I have the honour to refer to paragraph 1 (b) of my letter No. 765/79/48 of the 6th November, 1948, and to paragraph 3 (b) of

(25) '48 the Secretary of State's despatch No. 302 of the 24th September, 1948,

regarding the new financial arrangements for Hong Kong, and to inform you that I have been informed by the Financial Secretary that the following authorities are being obtained for the writing off of losses, the abandonment or remission of claims or the writing off of assets:-

2.

(a)

(b)

All write-offs under Colonial Regulations 278 (a) and 278 (c) are by authority of the Governor, with the approval of the Legislative Council.

phs of lawy All abandonment of claims or remissions of arrears of revenue under Colonial Regulations 241 and 278 (b) are by the authority of the Financial Secretary, with the approval of the Finance Committee where substantial amounts or questions of principle are involved.

With regard to the authority referred to at paragraph 1 (a) above, the actual procedure followed is for each item to be submitted for approval to Finance Committee and for the covering approval of Legislative Council to be obtained at regular intervals for the write-off of all the items. This procedure appears to follow the approved arrangements.

3.

With regard to the abandonment and remission of claims, the procedure described at paragraph 1 (b) above does not appear to follow the arrangements required by the Secretary of State, since the approval of the Legislative Council is not obtained in these cases. I shall be grateful, however, for your views as to whether or not the approval of the Legislative Council is required for the abandonment or remission of claims, after Finance Committee has been consulted in cases where substantial amounts or questions of principle arise, in order that I may take up the matter, if necessary, with the Colonial Secretary.

I have the honour to be,

Sir,

Your obedient Servant,

(signed) P. H. Jennings

Director of Audit.

The Director General of Colonial Audit,

Colonial Audit Department.