maintaining the K,N.V.R. unit (over and above the cost
14
of its equipment, par and rations which the Colonial Government was prepared to meet) would be beyond the
capacity of the Colony. Mr. Rowen said that the Treasury
would not be prepared to agree to meet any part of the cost of this service in the absence of definite figures, and it was agreed that it would be necessary to await
complete particulars of the financial position of Trinidad
befcro this question could be settled finally, taken of the Admiral y viow that the placing of a for ce
at His Majesty's disposal did not in itself affect the
incidence of cost; but further discussion of this point
was postponed until the question of placing at disposal should actually arise.
Note was
5. On the general question of the test of a
Colony'a capacity to pey, the Colonial Office urged that
reserve funds should not bo raided for this purpose.
The reserve Funde hec. been built up against a rainy day
over a period of yea:'s, and in some cases were earmarked
for particular purposes, e.g. the reserve funds in the
Falkland Islands were intended for expenditure connected
with the lend. Mr. Rowan said that he could not speak
with authority for the Treasury on this particular question,
but that personally, having regard to the fact that the
United Kingdom had no reserve funde and was accumulating
an enormous public debt, he would deplore the suggestion
that Colonial rescrr; funds should not be dram upon,
where nece66ary, to reet the cost of this breach of their
war effort.
6. One furthe: point emerged from the discussion,
The Admiralty said thet in Hong Kong they were paying the
cost of the Examination Service. #his is a different
arrangement from that which the Admiralty had suggested
for