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in permanent readiness, with civilian crews, as the boom

defences are to be at seven days' notice for laying, and

the use of one of them for training purposes, at times

when she is not required for her ordinary duties, would

not involve any additional charges to Navy Votes on account

of payments to the crews.

4.

The only structural alteration required to

a boom vessel to make her suitable for training purposes

would be the fitting of two sockets, the cost of which

would be very small. There is, however, liability for

loss or damage to or by the vessel while at sea on

training exercises, and any depreciation of the vessel,

and it is considered that these might remain Admiralty

liabilities.

5. The cost of fuel and stores, and generally

any additional direct expenditure involved in the use of the

vessel for training, including all liability towards the

personnel of the Naval Volunteer Force or their dependents

in the event of death or injury, would of course be the

liability of the Hong Kong Government.

6.

In view of the very considerable importance

attached to the efficiency of the Hong Kong Naval

Volunteer Force, I am to request that the Lords Commissioners

of H.M.Treasury will sanction an agreement being made with

the Hong Kong Government for a boom vessel to be used for

the training of the Naval Volunteer Force, when not

required for naval purposes, under the conditions set forth

above.

7. A copy of this letter has been sent to the

Colonial office.

I am,

Sir,

Your obedient Servant,

Sa.) S. H. PHILUS

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