Mr. Herbert to Mr. Foster.
Sir: I have the honor to inform you that Her Majesty’s Government have received a communication from the president of the municipal council at Apia respecting the audit of his accounts and those of the Samoan Government, as to which a difference of opinion has arisen between him and the members of the municipal board.
By section 5 of Article v of the final act of the conference on the affairs of Samoa it is provided that the president “shall be the receiver and custodian of the revenues accruing under the provisions of this act, and shall render quarterly reports of his receipts and disbursements to the King and to the municipal council.”
It appears that the auditors of the accounts appointed by the municipal council consider it necessary for audit purposes that the cash in the treasury at the time of audit should be verified.
With this view Her Majesty’s Government are disposed to agree, for it is evident that there can be no effective audit unless the auditors are permitted to count the cash in hand.
[Page 564]But Baron Senfft von Pilsach objects that, as the funds both of the Government and of the council are paid into one account, this could not well be done without showing to the auditors the moneys in hand belonging to the Samoan Government, which would be tantamount to allowing the municipal auditors to audit the accounts of the Government.
He observes, however, that this difficulty could be met by keeping the revenues of the municipal council distinct from those of the Samoan Government, and it appears to Her Majesty’s Government that this would be the best course to adopt.
As Baron Senfft von Pilsach states that, availing himself of the provisions of the final act, he desires to obtain a joint instruction on the subject from the three treaty powers, Her Majesty’s Government are anxious to learn the views of the U. S. Government in regard to this question, and to ascertain what answer they propose to return to the similar application which it is presumed that the president of the municipal council has addressed to them in this matter.
I have the honor to be, etc.,