CO129-607-2 Military administration- accounts- etc. 3-2-1949 - 14-11-1949 — Page 8

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SCHEME N

SIA BONATION

16/Abroad/2900 (F.1.)

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EVS

The War Office,

Whitehall,

th

S.W.1.

24 October, 1949.

15

Dear Kirkness,

(14), 10

Thank you for your letter of 29th July, 1949, reference 55217/6/4/49, 13) enclosing a copy of Hong Kong Savingram No. 525 with enclosures.

2.

We are now in a position to clear up to some extent the position existing between the War Office and Hong Kong with regard to the cash accounts of the Civil Affairs Branch of the British Military Administration and I shall be glad if you will be good enough to convey the information and comments in

It should, however, be made paragraph 3 below to the Governor of Hong Kong. clear that it in no way settles certain other outstanding issues yet to be resolved, e.g., the points raised by the Exchequer and Audit Department regarding the cost of operating certain Electricity Companies in Hong Kong during the B. M. A. period and the question of accrued pay referred to in paragraph 17 of the Accountant General's report on the Accounts, which were the

(1) subject of Rowan Walker's letter to you of 3rd February, 1949, numbered as above,

and about which a reply from Hong Kong is still awaited.

We should be glad if

you would kindly press Hong Kong for a very early reply on these matters.

3.

(a) With regard to the Accountant General's Report, dated 14th September, 1947, on the accounts of the Civil Affairs Branch of the British Military Administration for the period 14.9.45 to 30.4.46, paragraphs 2(B), 3 (b) and 4, it is confirmed that so far as the "Advances" and "Deposits" below the line in the cash accounts are concerned, Hong

thereof and, therefore, Kong is required to account only for the net that Hong Kong is entitled to credit for the "Deposits" totalling $2,636,066.57. Hong Kong will thus be in funds to meet outpayment of these "Deposits". In actual fact Hong Kong has already paid us for one item in the "deposits" which was due to the War Office, i.e., "Lionel Davis - Deposit payable in London through the Crown Agents- $164,440.00. "

(14)

(b)

With the receipt of Savingram No. 525 of 6th July, 1949, with enclosures, we are now able to reconcile the net debit balance standing against Hong Kong in War Office books with the Hong Kong

The reconciliation B.M. A. Advance Accounts as at 31st March, 1949. is as follows:-

D. J. Kirkness, Esq.,

Colonial Office,

The Church House,

Great Smith Street,

S. if. 1.