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One can hardly regard these proposals as

satisfactory.

The position is that in 1924 as an anti-

piracy measure 4 armed launches were fitted out by

the Hong Kong Government with civilian crews and

See 52373/24. commanded by Naval Officers with Navel gun crews.

Later arrangements were made for the complete running of these launches by naval crews.

Up to 21st August 1925 inclusive the cost of

running these launches was met in the following way.

Admiralty.

Cost of guns, ammunition

42440/25.

and Meval armament stores.

Pay and victualling

of British officers and men.

Admy.56758/25.

(Now missing,

Colonial Government,

General expenses of

running including cost

of hire.

(=

= up to 7th

August, 1925 approx.

8223,500.)

When the boycott set in and trade was at a

standstill Hong Kong would doubtless have given up these launches, but no doubt in order to maintain

but attached communication with Shameen and in view of desirability

copy of

register

cutting.)

B/T.1003/26.

of extra naval assistance Admy, then stepped into the breach and took over the launches as from 22nd August

1925.

In the meantime a determined attempt was made by Hong Kong to get the whole cost of running the launches defrayed from Imperial funds but after a conference here with Sir E. Stubbs and in view of resistance put up by Admy. the attempt was abandoned.

Now that the boycott is officially off and

that Hong Kong is purporting to do a certain amount of trade it is natural enough that Aamy. should attempt

to

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