COPY
113
MEMORANDUM REGARDING INCIDENCE OF CHARGE OF RELIEF
*
REHABILITATION SUPPLIES FOR THE FAR E. STERN
COLONIAL TERRITORIES. IN PARTICULAR THOSE SUPPLIES
SHIPPED BY WAR OFFICE AFTER 31. 3.46
1. The estimates of requirements contained in the Young and Brett Reports for the first six months of liberation were exɩmined by a Mar Office Standing 3ub-Committee on Shipping and Supplies and all items considered as coming within a "disease and unrest" standard were approved by that Committee as valid for procurement by the War office. These requirements were passed to the various W.0. Provision Branches for procurement action. Requirements which could be met from India were pussed to India for the necessary action. Ordnance and other peculiŭrly military stores were to be obtained from military Depots and, in the case of new production, demands were to be placed on the Ministry of 3upply. In the case of foodstuffe procurement action proceeded in consultation with and on the advice of the Ministry of Food. The cost of these stores was met from United Kingdom funds and was treated as part of the cost of the military administrations. The advices which the War office sent to ALFIRA and SACSEA contained no information as to cost of the stores, and since War Office procurement action covered Burma, Hong Kong, Malaya in addition to British Borneo, the War Office cannot in fact state the exact cost of the supplies received by an individual territory.
2. Any receipts from the sale of the stores during the period or the militury administrations were credited to the accounts of the mili tɛry administrations thus reducing the charge on War Office in respect of the cost of these administrations. (The Treasury have agreed not to ask Colonial Goverments for my contribution towards the net cost of those administrations.)
3.
Receipts from sale of the above atores continued to be received by the Colonial Governments after the termination of the military administration periods and Colonial office and Treasury agreed that those receipts should be paid over to His Majesty's Goverment by the Colonies (War Office telegram 01733 und 01734 of 19th February, 1946, to SACSEA - 55217/6/4B/46).
4. Owing to delays in delivery by manufacturers, etc., or the supplies ordered by the War Office, the rull programme had not been shipped by the time the Military Administrations were terminated. It was accordingly agreed between the ur office and the Colonial Office in March, 1946, that requirements accepted as valid before 1st April, 1946, but still outstanding would be met us a war office commitment. The rinuncial implications were left for subsequent settlement.
5. In May, 1946, Wur office und Treasury wrote to the Colonial office pointing out that receipts from sales of those supplies should be paid over to His Majesty's Government. The shipment or the supplies continued to be undertaken by the Sar office up to 30th June, 1946, ufter which it was taken over by the Crown Agents, although the cost of the supplies continued to be met by the War orrice.
6. On 18th July, 1946, the two Mulayan Governments were notified of the above arrangements in greater detail, as regards those stores not shipped by 31st March, 1946. (This date was applied to 11 the r Eastern Colonial territories, although Military administrations terminated at various dutes víz:- 1st April, 1946 (Malayu), 1st May,
(Hong Kong) 15th April, 1946 (Surawak), 6th July (Brunei), 15th July (North Borneo). The detailed arrangements were as follows:-
w