B—l [Pt. ll]

Nandi Aerodrome, Fiji Mention was made last year that an amount of £625,803 remained due from the Government of the United States of America on account of the construction by New Zealand of the above-mentioned aerodrome, and that settlement would probably be allowed to stand over for post-war discussion. The Audit Office has been advised by Treasury that the matter was considered in connection with lend-lease final adjustments and that no further amounts will be received on the specific account of the balance mentioned in the foregoing. Eastern Group Supply Council The total claims certified in respect of stores produced in New Zealand amounted at 31st March, 1947, to £19,509,240 18s. 3d., and the balance due from the British Ministry of Supply was £303,679 10s. Id. With one exception, all contracts have been either completed or terminated. Financial Arrangements with the Government of Fiji The presence of New Zealand Forces in Fiji during the war led to financial transactions with that country which in the end involved adjustments of a complex nature. An Audit Officer who lately looked into the position concluded a review of the relative matters in the following sentences: — In fine the net amount due to the New Zealand Government by the Government of Fiji after all adjustments have been made is £(F)768,580. This indebtedness was accepted by the Fiji Government, which arranged with the Colonial Office, London, for the New Zealand equivalent of this amount to be deposited to the credit of the New Zealand Public Account, London. After considerable delay Treasury was advised by the High Commissioner's Office in March, 1947, that, owing to the complexity of the claim, the settlement was still the matter for discussion between the Colonial Office and the United Kingdom Government. Military Currency, Italy It was the intention that the Allied troops in Italy should be paid in lire at the expense of Italy, but when this currency was spent in canteens and it was desired to remit any part of it elsewhere it fell on the United Kingdom Government to redeem such part in sterling, in the same way as it fell on the New Zealand Government to provide for pay remitted by New Zealand personnel. The British War Office estimated that up to August, 1945, some £20,000,000 had been paid in respect of canteen remittances. While it is not possible to fix with exactitude the proportion of the amount attributable to sales to New Zealand personnel, the War Office estimates it, on the basis of the relative strengths of Forces, to be approximately £600,000 sterling up to August, 1945, leaving the period from September, 1945, until the withdrawal of the New Zealand troops from Italy to be later dealt with.

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