CO129-625-1 Trading Reserve Fund 1-5-1950 - 31-10-1951 — Page 30

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HONG KONG LEGISLATIVE COUNCIL

MINUTES.

The Minutes of the meeting of the Council held on 19th April, 1950, were confirmed.

OATHS.

Mr. A. G. Clarke and Mr. A. P. Weir took the Oath of Allegiance and assumed their seats as Members of the Council.

PAPERS.

THE COLONIAL SECRETARY, by command of His Excellency the Governor, laid upon the table the following papers:

The New Territories Regulation Ord., 1910,-Order under

S. 6A(2)(a). (G.N. No. A. 76 of 1950).

The Public Health (Sanitation) Ord., 1935,-Order under

S. 99. (G.N. No. A. 77 of 1950).

The Dutiable Commodities Ord., 1931,-Amendments to the

First Schedule. (G.N. No. A. 78 of 1950).

The Rating Ord., 1901,-Order under S. 8(2). (G.N. No.

A. 79 of 1950).

The Immigrants Control (Amendment) Regulations, 1950.

(G.N. No. A. 80 of 1950).

The Places for Post Mortem (Amendment) (No. 2) Order,

1950. (G.N. No. A. 81 of 1950).

The Immigrants Control (Amendment) (No. 2) Regulations,

1950. (G.N. No. A. 83 of 1950).

The Price Control Order, 1946,-Amendments to the

Schedule. (G.N. No. A. 84 of 1950).

Annual Report of the Director of Education for the year

1948/49.

MOTIONS.

THE FINANCIAL SECRETARY moved the following resolution:

Resolved that this Council approve the accounting arrangements proposed for the Department of Supplies and Distribution in His Excellency the Governor's Despatch No. 48 of the 19th March, 1949, and approved by the Secretary of State for the Colonies in his Despatch No. 226 of the 27th September, 1949; and that this Council further approve that the limit of $10,000,000 proposed for the Japanese Trade Suspense Account be increased to $15,000,000.

HONG KONG LEGISLATIVE COUNCIL

He said:

Sir, the correspondence referred to in the resolu- tion has been in the hands of Honourable Members for some days, and I am sure that they will not wish me to weary_them with a recapitulation of all the details set forth in them. Never- theless, an explanation of the increase in the limit for the Japanese Trade Account is required, and possibly some parti- culars of the present position will be of interest.

It is now common knowledge that Government has taken the decision to terminate the existence of the Supplies and Distribution Department as a separate entity, and to amalgamate it with the Department of Commerce and Industry. The first step to this end has been taken by the appointment of one officer to be head of both departments. That officer happens to be myself, and if, in the course of my remarks, it appears that I am sometimes speaking as Director of Supplies and Distribu- tion rather than as Acting Financial Secretary, I trust that Honourable Members will appreciate my difficulties.

It is as yet a little too early to say how the amalgamation of the two Departments will be carried out, and, quite apart from the difficulties of office accommodation, it is felt that the most satisfactory results will be attained if things are not rushed. I think I can promise, however, that concrete results may be expected in the not too distant future.

I need hardly comment on the accounting deficiencies of the past which have been disclosed in the papers laid before this Council. Messrs. Lowe, Bingham & Matthews have produced accounts for the period of the British Military Administration, and are working steadily on the accounts from the 1st May, 1946, which will be communicated to this Council as soon as they are available. The accounts for the B.M.A. period, with which is bound up the question of our liability for the proceeds of sale of B.M.A. stores, which were inherited by the Civil Government, are now under consideration in London. This is an example of the difficulties with which we are faced in our endeavour to ascertain how we stand financially.

The question as to whether the accounts should continue to be audited by Messrs. Lowe, Bingham & Matthews after the accounts for the past have been cleared up is one that is not clearly brought out in the correspondence; it is Government's view that this course would be advisable, and the matter is now under consideration.

Japan Trade has been much in the mind of the public since the devaluation of sterling. The general principle on which this trade is operated is well known, and at the time Your Excellency's Despatch was sent, the limit of 10 million dollars was set for the Suspense Account as being the equivalent of 24 million U.S. dollars, the limit to which we proposed to work on the open account. Since that time, sterling, and with it the

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