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expenses should be shared equally by the Navy and the Colony.
As regards insurance explanatory correspondence is
5.
attached.
At the present value of the vessels the total sum
involved is about £120 a year, to be shared by the Admiralty and Hongkong Government. I have an open mind about the desirability
of effecting this insurance but as the amount is small and the
Colonial Government are desirous of doing so, I think it would
be preferable to fall in with their suggestion.
6. Possibly matters may have improved by the time the
report called for by Admiralty telegram 213, 10th November, is due, but I think the chance of any permanent change is so remote
that it would be advisable to enter at once into renewal of the
Charters for the period of twelve months, the date the Colonial Government contribution is to commence being arranged locally
as soon as Their Lordships' decision on this matter is
communicated.
7.
In order to obtain satisfactory terms for renewal of the Charters an early reply is very desirable.
(Sgd.) E.S.Alexander Sinclair.
Admiral, Commander-in-Chief.