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 18

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LOWE, BINGHAM & MATTHEWS. HONG KONG

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The total indebtedness of Supplies Branch to

the Custodian per his records at 31st March, 1951, was,

therefore, $3,046,933.49.

We wrote to the Assistant Director (Supplies

Branch) on 20th August, 1951, requesting that enquiries

be instituted regarding this variance between the re-

cords of Supplies Branch and the Custodian. We shall

be glad to be informed of the final disposal of these

outstanding items. Meanwhile, from our own investiga-

tions, the position would seem to be as follows :-

During the period of British Military Admin-

istration to 30th April, 1946, large quantities of goods

were requisitioned and acquired from Custodian stocks.

Because of the chaotic conditions prevailing at the time

of the issue of the goods a considerable time usually

elapsed before debit notes were issued by the Custodian.

Debit notes were dated as and when issued, i.e. mostly,

we believe, after commencement of the Civil Administra-

tion on 1st May, 1946. It may well be that goods, other

than those mentioned later, were obtained from Custodian

stocks after the end of the British Military Administra-

tion period but, from the scant records available in

Supplies Branch, it is impossible to ascertain any de-

finite information regarding this point. Accurate in-

formation may only be obtained from the records of the

Custodian.

Proceeds from the sale of Custodian stocks

held by Supplies Branch on 1st May, 1946, were accounted

for in the Realisation Account for the period from 1st

May, 1946, to 31st March, 1950, (see Schedule XIX of our

Statement of Accounts and Modified Report dated 18th Jan-

uary, 1951, for this period).