CO129-619-4 Department of Supplies- Trade and Industry- organization and finance 19-3-1949 - 31-3-1949 — Page 67

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Out of a total of

asparagus, grape fruit and pineapple crush, beetroot, sweet

pickles, tomatoes and fruit mince meat.

800,000 cases received 25,000 cases or slightly over 3% were condemned and destroyed; this is considered a very low

proportion for canned goods of this type and condition.

The

On the financial side provision was made in

fixing selling prices for these prospective losses and no

financial loss was incurred on the complete transaction.

figure of $249,000 quoted as the value of the goods written

off is a token figure only; as the goods were purchased for a

lump sum and no financial loss was incurred, no real value can

be assigned to them.

It should also be stressed that, once the goods

had been condemned by the Health authorities, it was necessary

to proceed with their disposal immediately both on grounds of

public health and to avoid further storage charges.

(e) Paras. 45-48.

Much of the

The comments of the Director of Audit on trade

with Japan are, as he himself admits, based on incomplete

information regarding the considerations involved.

correspondence relating to Japanese trade is Secret and may not

yet be disclosed, but it is common knowledge that His Majesty's

Government has made with the Supreme Commander, Allied Powers,

an Overall Agreement governing trade between the sterling area

and Japan, and that Hong Kong has been excluded from this

agreement. This has given rise to some confusion as certain

requirements under the sterling area agreement to which the

Director of Audit has drawn attention such as the necessity for

restricting imports to essentials do not apply to this Colony.

The implication in paragraph 48 of the Report

that this Government is not conforming with the instructions of

the Secretary of State is based on a misunderstanding of the

position and is not accepted.

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