§ Mr. GINNELLasked the Secretary to the Treasury what are the purposes at Hong Kong for which money has been raised in the five last completed financial years at a total loss of £166,017 7s., being an annual average loss of over £33,000; who are the persons responsible for this loss; what is the explanation of it; and why the Comptroller and Auditor-General has not embodied in his Report on the Treasury Chest Fund a summary of the explanation and his comments on it?
§ Mr. MASTERMANThe figures quoted by the hon. Member appear to include in the total loss a profit of £25,985 made in 1907–8. The average loss in the last five years has been about £23,000. The money is required for payments in Hong Kong and China, chiefly for Army and Navy services. As I explained in Committee of Supply both last year and this year, the loss was mainly due to the fact that owing to fluctuations in the price of silver, the rate at which dollars are issued as the equivalent of sterling (which under the present system is fixed some time in advance) does not correspond with the rate at which the dollors are bought in the market at the time of issue. As I stated in debate on Monday last, I propose to appoint a small Committee to consider the method of fixing the dollar rate, which dates from 1888. The Annual Account of the Treasury Chest Fund, as presented to Parliament, is accompanied by the Report of the Comptroller and Auditor-General on the Account, containing such comments as he thinks necessary.