TNAG-0620-FCO40-768-Annual-accounts-of-Hong-Kong-Government-for-year-ending-1976-1977 — Page 4

GL Lyth L8q

Director of Audit

Central Government Offices

HONG KONG

233-4377

HKK 100/1

8 March 1977

23 MAR 07ÏÏ

ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 1976

1. The Annual Report of the Director of Accounting Services together with your report was duly received and has been seen by Mr Carter, Audit Adviser.

2. Mr Carter comments as follows: "The Audit Report raises a number of points of substance but the comments of the Finance Branch suggest that they are receiving attention. So long as the local dialogue continues in this way, I would not suggest a need for further action

here

3. As I said in my letter to you on 18 May 1976, I presume that all matters raised by you are progressed to a satisfactory conclusion and if this were not so then presumably you would raise the matter in a later report. I notice, for example, that in paragraph 53 of your report you suggested that the Secretary for the New Territories should review, in conjunction with the Director of agriculture and Fisheries, the methods of counting and assessing pine trees for the purpose of paying compensation. In commenting on this paragraph the Finance Branch point out that it is established practice for the New Territories administration to count trees for the purpose of compensation and that the Director of Agriculture and Fisheries is consulted only in those cases where professional knowledge is required, such as the identific- ation of tree species. Presumably you will go back to the Finance Branch on this matter since, where sampling is the basis for estimating compensation, then the final result should be checked by a Forestry Officer to see whether it is compatible with the geographical and physical nature of the terrain.

CC:

4

FL Carter (Finance Dept CDM A601B)

↑ Duffy

Hong Kong Department X 245 233 4377

I return herewith the extract from the Hong Kong press attached to your minute of 3 March.

Encls