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السورية
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evidence. Now it seems to be a case of "One damned thing. I feel sure that in Downing Street you will agree that, now that the chance has shown itself, these stables should be swept as clean as possible. I fear that the other disturbing outcome from the Commission report is going to be the revelation of serious laxity in the control of Government Expenditure, at any rate on defence works. For instance, I discovered during the week prior to sailing that the tunnelling arrangements made with Marsman Ltd. last September on a cost plus percentage basis were not only subject to the sketchiest supervision but had
been reduced to a formal contract and still rest on a few letters exchanged between a P.W.D. Senior Officer and Marsmans, being subject to termination at one month's notice by either side!!
Now, we are spending millions on these tunnels and, as you know, a 'cost plus' basis calls for a regular 'tiger' in the way of a resident engineer. There seems to be good reason to think that Marsman & Co. have been unnecessarily dilatory and which of course is to their advantage; unquestionably they have charged Government up with all sorts of expenditure which was not warrantable - for example they charged 10% on the purchase cost of machinery which was paid for by Government itself! And I fear that a great deal of expenditure may have had Treasury covering approval without proper scrutiny. I hope that I am wrong.
I learned most of this aboard this vessel between my official good-bye and up-anchoring, having asked Cressall to come to see me after my perusal of the morning's paper. I could do no more than request him to see Smith at once, tell him what he had told me and urge upon him (a) to have the contract with Marsman & Co. drawn up by the Crown Solicitor without delay and (b) to see to it that supervision of a strict kind was improved by the P.W.D. over the contractor. imposed
You may imagine that all this leaves me with a nasty taste in my mouth on my departure hence and I feel somewhat culpable myself.
But when I got back here in March and found tunnelling and other defence works in full swing it did not occur to me to "dig down" and find out what the Treasury and Audit seemed I content with. I do not wish, however, to exculpate myself
unduly in a matter in which Í must bear responsibility.
THE CADET SERVICE
We spoke of this while I was at home and I promised to send you a despatch on the subject in relation to Hongkong. But I found myself so immersed in Civil Defence problems on my return that I did not get the chance to consider it ar all fully. On one point at least I am clear in my own mind, viz. that cadets do not make as good Heads of technical departments as do technically-trained men. They have not the expert knowledge which would lead them to innovate or keep up to date: their technical subordinates, denied access to the topmost rung of their ladders and often resentful of subordination to men who do not know their job, have little or no incentive to suggest progressive action or re-organization - such measures represent hard work for those who have to put them through and so stagnation results. A shining example of the converse is the Education Department in Hongkong which had languished lamentably though in the hands of able men such as N.L. Smith and G.R.Sayer: caution, lethargy and promotion by seniority were its most
notable