CLASS V.--continued.

VOTE 2.-COLONIAL SERVICES—continued.

(I. 1.)

WEL-HAI-WEI.

STATEMENT of ASSETS and LIABILITIES on 31st March 1906.

Class V.-continued.

VOTE 3.

TELEGRAPH SUBSIDIES AND PACIFIC CABLE.

ACCOUNT of the Sum Expended, compared with the Sum Granted, to pay the SUBSIDIES to

certain TELEGRAPH COMPANIES, and a GRANT IN Aid of the Annual Expenses of the Pacific CABLE (Pacific Cable Act, 1901, 1 Edw. VII. c. 31) in the Year ended 31st March, 1906, showing the Surplus or Deficit upon each Sub-Head of the Vote.

VOTE 3.-TELEGRAPH SUBSIDIES AND PACIFIC CABLE-continued.

EXPLANATION of the Causes of Variation between Expenditure and Grant.

G.–The Pacific Cable Board's expenditure in the year 1905-6 was below, and the earnings were above, the estimated amounts. It was, therefore, unnecessary to issue the whole of the grant. The amount of the balance estimated to be in the hands of the Board on 31st March 1906 was taken into account in estimating the grant required for 1906-7.

H.—The Colonies contribute in each year a proportion of the expenses of the Pacific Cable met out of the Vote in the preceding year, and as these expenses in 1904-5 were below the estimated amount, the Colonial contributions in 1905-6 were proportionately less.

The Surplus of 4,3751. Os. Od, shown on the Account of the Vote “Telegraph Subsidies and Pacific Cable," for the year ended 31st March 1905 has been surrendered.

I certify that this Account has been examined under my directions, and is correct.
Examined,

John A. Kempe,
W. M. Martin.

Comptroller and Auditor General.

REPORT OF THE COMPTROLLER AND AUDITOR GENERAL

Sub-Head D. 1.—In addition to the Expenditure shown under Sub-Head D., and in accordance with

the terms of the agreement of 23rd April 1901 between the Eastern Extension Company
and His Majesty's Government, a sum of 8001. was paid to the Company on account of
the necessary repairs of the Cable between Chefoo and Wei-hai-wei. As no provision
was made in the Estimate for work of this nature, the amount in question has, with
Treasury sanction, been charged to the Civil Contingencies Fund.

Grant and 2.—The Grant and Expenditure are equal, the deficiency of 4,2191. 10s. Od. in the
Expenditure. realised amount of Appropriations in Aid having been counterbalanced by the saving

on Sub-Head G. “Pacific Cable, Grant in Aid."

John A. Kempe,
Comptroller and Auditor General.

Class V.- continued.

VOTE 4.

CYPRUS (GRANT IN AID).

ACCOUNT of the Sum Expended, compared with the Sum Granted, in Aid of the Revenue

of the ISLAND OF CYPRUS in the Year ended 31st March 1906.

I certify that this Account has been examined under my directions, and is correct,

John A. Kempe, Comptroller and Auditor General.

Examined,

C. H. Archibald.

Parliamentary Grant. Even and Quit Account.

REPORT OF THE COMPTROLLER AND AUDITOR GENERAL.
1. The whole of the Grant in Aid of 16,0001. has been issued.
2. The Grant and Expenditure are shown as equal-

£.
Grant

16,000 Expenditure

16,000

(B.) (B. 1.)

1

Account for

REVENUE AND EXPENDITURE OF THE ISLAND. 1904-5.

In the absence of a Grant in Aid for 1904–5 no Report was presented to Parliament, (A) (A. 1.) but I now append the Account of Revenue and Expenditure for that year. Financial

The Account for the year 1905-6 is appended, together with a memorandum which has Position of been furnished by the Receiver General of Cyprus, explaining the more important the Island. differenees between the Estimates and the Actual Receipts and Payments

. Exclusive of the Grant in Aid on the one side and payment of Tribute on the other, the Revenue amounting to 238,2121. 143. 2.p., shows a surplus over the Expenditure of

79,0951. 78. 3c.p. as compared with 64,4771. 19s. 9c.p. in 1904-5. Revenue

The Revenue for the year, amounting to 238,2121. 14s. 2c.p. exceeded the Estimate
of 205,7571. by 32,4551. 14s. 2c.p.
The chief Heads on which the increases occur are-

£

c.p. Customs

10,468 3 5 Tithes

16,724 17 3 Excise

3,227 10 1
Interest

1,594 17 5
The main decrease is under the Heading of Railway, 2,1861. 14s., which is stated to

be due to an over-estimate and to the Railway not being opened until October 1905. Expenditure.

The Expenditure of 159,1171.68.8c.p. exceeded the estimate of 157,8001. by 1,3171. 6s. 80.p
Tribute. The amount paid in respect of Tribute was 92,7991. 118. 2c.p.
Assets and

The Statement of Assets and Liabilities shows that on 31st March 1906 there was an
Liabilities. excess of Liabilities over Assets of 12,4111. 28. 8c.p.

The arrears of Revenue included in the Assets amount to 4,7071. 18. 8c.p. as against 6,5841. 19s. 6c.p. in the previous year; of this amount it is stated that 4,0001. may be regarded as recoverable.

There was a further liability on 31st March 1906 of 309,7981. 108. in respect of

money borrowed under the Colonial Loans Act, 1899 (62 and 63 Vic., cap. 26). Local Ex- The Revenue and certain other accounts, including those of the Railway, have been amination examined locally by officers of this Department with satisfactory results. of Revenue Statement I append a summary of the totals of the Revenue and Expenditure of the Island in of Revenue each year since its occupation in 1878. Including the Grants in Aid on the Receipt side penditure

and Payments of Tribute on the Expenditure side, the summary shows a net Deficit of since 1878. 17,1231.

(D.) On the account of the year now under report there was a surplus of 2,2961.
Loan Works. The total Expenditure on the works in connection with Famagusta Harbour and the

Railway Construction which were authorized under the Colonial Loans Act, 1899 (62 and
63 Vic., cap. 36) amounted up to 31st March 1906 to 200,534l. 11s. 7c.p.

, of which
107,6841. 2s. 1c.p. was in respect of the Harbour and 92,8501. 98. 6c.p. of the Railway.

The amount outstanding on account of the Loans in respect of these Works on 31st March 1905 was 99,0901. During the year under report further advances amounting to 154,5001 were received, while repayments were made amounting to 1,9901., leaving a balance

outstanding on 31st March 1906 of 251,6001.
Outstanding The outstanding questions relating to previous years have now been settled. There
Questions. are a few questions outstanding on the Account for 1905–6 which do not call for special
remark.

John A. Kempe,
Comptroller and Auditor General.

(C.)