3

Admy point out that

even so the contri-

butions agreed on is

ruch less than H.K.

ought to pay on this

basis.

to revert to the former position i.e. that

if the launches are to be continued as an anti-

piracy measure the Hong Kong Government should bear the general running expenses. In point

of fact the provisional arrangement made

between the Naval C. in C. and the Colonial

Government is very much more favourable than that

described above, seeing that the expenses are

to be apportioned on the rough basis that the personnel should be entirely a naval charge and

under navy control and that the expense of hire

and general running expenses should be shared

equally by Admiralty and Colonial Government.

On this basis Hong Kong will have to pay

£3,600 per annum plus insurance of value.

Had the usefulness of these launches been

unquestioned we would consider ourselves lucky

to have secured this arrangement. As it is how-

ever we have the prospect of H.K. in period

of financial difficulty incurring this additional

commitment on an object which the late Governor

condemned as useless.

Sir E. Stubbs' views are set out in the

conference minutes enclosed in 1003/26.

Briefly

the line he took was that launches were ineffective

because piracies usually took place on the sea

and launches were only for river work; that

piracies were usually from within and not from

witout and that launches could not therefore be

expected to cope with them; that the real reason

why they were demanded by shipping to convey

vessels up and down the river was to save them

not from piracy but from the exactions levied

by

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