OUTWARD TELEGRAM
This document must be paraphrased if the communication of its contents to any person outside Government Service is authorised.
779
54126/14/50
Typex
TO HONG KONG (Sir A. Grantham)
Sent 24th March 1950. 17.00 hrs.
No. 422.
Secret.
1.
Paragraph 2 of my telegram No. 409.
Priority savingram being sent shortly setting out in full various aspects of three problems referred to and giving following information:-
A.
B.
(i) Stores supplied in B.M.A. period -
£2,700,000. This includes £800,000 for Siamese free rice.
(ii) Stores supplied subsequent to B.M.A.
period £900,000.
(iii) Stores supplied from India and Australia
in both periods £600,000.
(iv) Total £4,200,000.
Stores purchased from £3,250,000 loan in aid converted into grant in aid- see paragraph 3 (b) of my telegram 456 of 1948. Cost of purchases can presumably be readily ascertained from Crown Agents accounts.
2. Financial arrangements already settled as regards A and B above require that receipts from sales should be paid over to H.M.G., and it is only as regards Siamese free rice and post-B.M.A. stores (see paragraph 4 of my telegram No. 46 of 1948) that questions of principle remain to be settled.
3. Receipts credited to H.M.G. in respect of A and B have been (i) £1,500,000 through B.M.A. accounts and (ii) £1,500,000 by Civil Government. See paragraph 2 of your telegram No. 181 of 14th February 1948. (iii) total £3,000,000. It is appreciated that the £3,000,000 receipts are in respect of all above categories and some supplies were (a) given away or (b) sold at less than cost price (c) some were retained by Government and (d) some were unusable on arrival and wastages occurred. Some reasonable estimate however of amounts involved which would help to explain difference between A plus B and £3,000,000 receipts would be useful in connection with forthcoming discussions, as a factual background which might assist in reaching decisions in principle as regards Siamese free rice and post- B.M.A. stores. Accordingly you may wish to start investigating this in advance of receipt of my savingram.
Copies sent to:-
Treasury
>
Mr. R.Marris