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Summarising, it can be said that while non-commercial small craft, e.g. yachts, were, as a general rule, acquired, this action was normally taken in the case of commercial small craft and larger vessels only where the alterations made for service were so extensive that the commercial character of the vessel was destroyed or where there was every probability that the vessel would be lost.
9. As regards compensation paid, while for non-commercial small craft the price was the estimated 1939 market price less subsequent depreciation, for commercial small craft it was the war risks insurance value under the Government Tonnage Replacement scheme (e.g. tugs; and the Deferred Payments Scheme (trawlers and drifters). For other commercial small craft an estimated 1939 building price, less depreciation, plus an increase of up to 25 per cent in respect of war time appreciation was taken. For larger commercial vessels, except those acquired in the very early days of the war, the com- pensation paid was, in general, the war risks insurance value under the Government Tonnage Replacement Scheme, the underlying implication of payment on this basis being that only efficient and running ships were in question.
10. I am sending copies of this letter to Moberly (Treasury), Reid (admiralty), Cairns and Robertson (War Office), Frince (Air Ministry) and Hosie (Ministry of Defence).
Yours sincerely,
Wansician