CO129-619-4 Department of Supplies- Trade and Industry- organization and finance 19-3-1949 - 31-3-1949 — Page 64

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hoped that profit and loss accounts for the years 1945/6 and

1946/7 will be completed early in 1949.

before Council at the first opportunity.

9.

They will be laïd

The accounting difficulties have indeed been

such that when trade with Japan commenced to develop and to

throw an additional burden on an inadequate staff, it was considered advisable to make more satisfactory arrangements

for accounting than had hitherto existed. The old Japanese

Trade Suspense Account with the Treasury was therefore closed

for trading purposes, other than the completion of outstanding

contracts, and arrangements were made with the Hong Kong and

Shanghai Banking Corporation to keep the accounts on behalf

of this Government free of charge as from the 15th March last.

Government retains the profit on exchange from this trade.

The Secretary of State was informed of these arrangements in

telegram No.392 of 16th April, 1948.

10.

Government accepts the main burden of the

Director of Audit's criticism, that is, that Colonial

Regulations have not been adhered to, and it is proposed at

an early date to seek the covering approval of the Secretary

of State for the various departures from these Regulations

set out in the Director of Audit's report. He has however

made catain other criticisms on which I feel I must comment.

(a) Paras. 3 and 6.

Payments to revenue from S.T. & I. in

accordance with the 1946-7 and 1947-8 estimates were delayed.

pending settlement of outstanding questions regarding the Department's Accounts. Payment of $768,359.49 in respect of

1946-7, being the actual e xpenditure by the Department under

the heads "Personal Emoluments" and "Other Charges", has now

been made, and it is hoped to make a similar payment in

respect of 1947-8 in the near future.