CO129-629-4 Commerce and Industry Department- supplies branch. Includes a statement of accounts for May 1946-March 1950-... 1-11-1951 - 31-1-1952 — Page 10

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LOWE, BINGHAM & MATTHEWS, HONG KONG

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to be obtained from outside sources and interest charges

would accrue. On the other hand, the Treasury Suspense

Accounts are overdrawn principally because it is con-

sidered by Government that adequate stocks must be held

to keep the Colony supplied during a possible temporary

interruption of supplies; therefore it could be argued

that this interest charge is not justifiable against

the operations of Supplies Branch.

If the Colony's general revenue accounts,

which will be credited with $1,825,807.80 interest from

Supplies Branch, are read in conjunction with these ac-

counts then no misunderstanding should arise, as the

only effect of the charge is to decrease Supplies Branch

surplus and increase general revenue.

3. The loss on Flour during the year has princi-

pally arisen because of a compulsory clearance of stocks

occasioned by the infestation and deterioration of the

Flour.

4. As mentioned later under the head Balance Sheet

Assets Stocks on Hand an amount of $351,770.22 has

been written off Firewood stocks to take care of an es-

timated loss of weight and deterioration during storage.

OPERATING ACCOUNT

JAPAN TRADE

As from April, 1950, the method of arranging

and financing imports and exports between Occupied

Japan and Hong Kong was revised. Transactions in pro-

cess under S.C.A.P. contracts at 31st March, 1950, were

allowed to be completed and the necessary financial

entries were passed through the then existing Two-Way

Account with S.C.A.P.

The financial details of transactions com-

menced after 1st April, 1950, were passed through a new

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