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 22

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LOWE. BINGHAM & MATTHEWS. HONG KONG

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grove swamps at Semporna and the firewood logs are

covered by water at high tide, therefore they are

dripping wet when shipped. These percentages are for

barkless firewood and the percentage will be even

greater if you have a shipment of partly barkless fire-

wood and firewood with bark. For firewood with bark

the loss of weight can be as high as 25% after twelve

months in storage."

The Officer-in-Charge, Fuel Section, states

in written confirmation, inter alia, "I confirm that

in my opinion the figure of 20% over a storage period

of twelve months for loss of weight is a fair and just

estimate and that an additional 5% could reasonably be

allowed for depreciation due to white ant corrosion,

etc., after a further year's storage."

We are not qualified to express an opinion

regarding estimated loss in weight of firewood during

storage but would point out that it appears that the

large stocks are held in accordance with Government

policy and not for the purposes of the trading activi-

ties of the Supplies Branch.

Godowns

Chatham Road, Kowloon. At Cost - $864.877.68

The cost of these Government Godowns, completed

during the year under review for the purpose of Rice

Storage, was financed from a special "Rice Storage Sus-

pense Account" opened by Treasury. The construction and

We cost was supervised by the Director of Public Works.

have not audited this cost but have seen a copy of a letter

from the Director of Public Works to the Colonial Secre-

tary intimating such to be $864,877.68.

Maintenance and operating expenses have been

paid from the "Rice Storage Suspense Account" and charged