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 44

LOWE, BINGHAM & MATTHEWS, HONG KONG

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which remained unbilled.

An invoice was finally issued

on 28th March, 1950, for $126,182.88 and paid by the firm

We also found that goods had been issued to

concerned.

the Controller of Stores in respect of which no debit

notes have been issued. It was explained that these were

stores supplied by H.M. Government without charge which

were intended for Government use and not for resale to

the public.

During the period under review a large quantity

of stores was received without charge which realised ap-

proximately 12,600,000.00 on sale. It has been explained

to us that these goods were supplies provided by H.M. Gov-

ernment, in respect of which priced vouchers were not re-

ceived, and that in accordance with terms of the Financial

Settlement between H.M. Government and this Government,

the net proceeds of these goods were to be applied to off-

set certain other liabilities assumed by Government. On

instructions from the Financial Secretary provision has

been made in these accounts for the payment to the Hong

Kong Treasury of a sum, determined arbitrarily in the ab-

sence of actual costs, intended to represent the net pro-

ceeds of these goods and charges which will not be made

by H.M. Government.

During the years 1946/47 and 1947/48 a quantity

of paper was sold on behalf of the Controller of Stores

and realised $34,040.17, the Controller of Stores being

charged $46,938.80 by the Crown Agents in respect of this

paper. A transfer was passed to the debit of the Section's

Suspense Account in October, 1948, crediting the sum of

$46,938.80 to "Miscellaneous Revenue, over-payments in

previous years".

During the years 1947/48 and 1948/49 a quantity