(a) That the organization set up should

ultimately be entirely independent of the Imperial and Colonial authorities.

(b) That the whole cost, including that of

initiating the scheme, should be borne by the Shipping Companies making use of the organization and by them alone in proportion to their demands on it, the distribution of the cost to be arranged amongst themselves.

15. It should perhaps be pointed out that the scheme must include provision for shipping which at present embarks regular guards at places other than Hong Kong, such as Singapore and Shanghai.

118

16. Conclusions. The conclusions of the Oversea Defence Committee submitted for consideration by the Committee of Imperial Defence may be briefly summarised as follows:-

(a) It is not for the Committee to suggest any

modification of the Cabinet decision to withdraw regular naval and military guards on the 31st March. If, however, the continuance of these guards for a further definitely limited period is considered desirable, the Committee propose that it should be subject to the following conditions:-

(i) That the Shipping Companies evolve an

efficient scheme and agree to bring it into operation at the earliest possible date, this date to be fixed by the 1st April.

(ii) That the full cost of any naval and military guards supplied after the 31st March be borne by those Shipping Companies which employ them.

(b) That any practical scheme should emanate

from the Shipping Companies, but the Committee suggest that in order to expedite progress His Majesty's Government might inform the ship owners, both in London and in Hong Fong, that they would be willing to advise them and to consider favourably any application for the services of retired ra val and military officers and other ranks.

(c) That any organization which is set up

should ultimately be independent of the Imperial and Colonial authorities, and that the whole cost, including those connected with the initiation of the scheme, should be borne by the Companies in proportion to their demands on it. "

2, Whitehall Gardens,

6th March,

S.. 1.

1930.

(sd) G.N. Hacready.

Secretary Oversea Defence Committee.

3.

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