CO129-624-14 Finances- relief stores- Hangover stores and Siamese free rice 1-7-1948 - 31-12-1951 — Page 15

26. R.L. Maris (Tay).

27

St. Cal Russell- Edmunds

(Tsy)

24.10.50

(27). Seen. Out by. Bu if no reply in

2 months.

15/3/51

abou

18

14.3.51

wl

21.3. 51

28 DA. Lovelock (tsy)

Mr. Tremayne.

-

refly & (22)

te

I wonder if I might bother you to look at Nos. 27 and 28 on this file regarding the question of submitting an audited statement in support of the transactions in connection with the disposal of relief stores in Hong Kong which were covered by the terms of the Financial Settlement of May 1950.

You will remember that at the recent Public Accounts Committee the Accounting Officer explained that since these transactions had been subject to a negotiated settlement between H.M.G. and the Government of Hong Kong, it was not proposed to ask the latter to submit any statement of account covering these sales. On being assured that this was satisfactory from our point of view, the Committee did not press the matter further. Accordingly although as the Treasury explained in No. 28 it was always their intention that a satisfactory settlement of account would be necessary in order that this matter should be properly finalised, we are not intending to take any further action in the matter.

You will see from No. 22 on the file that the Governor has given a fairly full explanation of the difference of something over £300,000 which could not be accounted for at the time the Financial Settlement was negotiated, and in No. 25 the War Office have expressed the view that it is not worth while attempting any further investigation of this matter. This being the position, (which the Treasury have not disputed) I doubt whether the

sine Governor could really give us any really satisfactory

A statement of account, and certainly anything which he could produce would not substantiate the figures any more than the information already furnished.

/Personally