CO129-619-4 Department of Supplies- Trade and Industry- organization and finance 19-3-1949 - 31-3-1949 — Page 22

Regulations which have resulted and to

which attention has been drawn in the

report by the Director of Audit.

I also agree exceptionally that

the certificate of Messrs. Lowe, Bingham

and Matthews as to the accuracy of the

Profit and Loss Accounts of the various

activities of the Department,which they

are preparing, may be accepted as adequate.

3. Having regard to the continuing

exigencies of the world commodity and

trading position, I agree that, for the

present at least, the Department of Supplies

and Distribution must continue its trading

activities and be run largely on commercial

lines. I therefore approve the maintenance

of Suspense Accounts as proposed in paragraph 5

of the Memorandum by the Financial Secretary

nd the

at enclosure 3 to your despatch, and th

continuance, so long as Hong Kong remains

outside the overall payments agreement, of

the existing arrangements for financing trade

with Japan. I also agree that the Director (I Supplies and Distribution

shall have general discretion, subject to

overall control by Government and within the

limits of the Suspense Accounts, to fix selling

prices and decide the volume of his purchases.

4. In view of the wide divergence from

the orthodox regulation of public finance which

these arrangements involve, I consider that

& consider it unnecessary,

new For the mount) any changes wn the existing anary curent for witha furamang made with Japan, j'a ordu to mut the offictions insid by in sicher of Audit.

their