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 12

L 4A

LOWE, BINGHAM & MATTHEWS, HONG KONG

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(c) This charge was waived in respect of

certain frustrated imports resulting

from embargo rulings.

Transfer Authorities

1/8% of the value of certain authorised transfers

of exchange to Japan through the Open Account.

EXCHANGE DIFFERENCES

HK$0.09 is credited to Hong Kong Government Exchange

Difference Account for every retirement effected

through the Open Account by Hong Kong importers, 1.e

importer pays HK$5.76 per US$1 of which HK$5.67 is

credited to the Open Account and HK$0.09 to Hong Kong

Government Exchange Difference Account.

We have seen copies of instructions issued to

participating Banks authorising the collection of the

above noted commissions and exchange differences for

the credit of Government.

The accounting records of the Hong Kong/

S.C.A.P. Open Account were maintained on behalf of Gov-

ernment by The Hongkong & Shanghai Banking Corporation

who also acted as the Central Bank and received as re-

muneration 1/20% of the value of import and export pay-

ments passed through the Open Account monthly.

We have not audited the Open Account main-

tained by The Hongkong & Shanghai Banking Corporation

on behalf of Government as we considered such a proce-

dure to be outside the scope of our reference.

In practice, it should have been possible

for the Japan Trade Section staff to have verified that

all commissions due under Letters of Authority, etc.,

had in fact been collected and credited to Hong Kong