PUBLIC RECORD OFFICE
Reference :-
C.O.885
17 PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-
COPYRIGHT PHOTOGRAPH-NOT TO
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who are thus unable to avail themselves of the privileges provided by that section of the Act. (iv.) It prevents the Colonies reaping the advantage of obtaining articles direct from store without delay, which they can occasionally do when there are surpluses in the Imperial Service; in which case they might in certain circumstances be supplied at a reduced rate. (v.) It causes great difficulties as regards inspection. This is due, in the first place, to the fact that the orders are often loosely worded, and not in the detail customary with War Office contracts; and, secondly, to the fact that they are placed so that delivery is taken from the firm's works. The result is that inspection and proof have to be carried out at those works, where it cannot be done with the proper degree of supervision in sufficient detail, and with due regard to interchangeability.
The above applies when the Colonies call on the War Office to carry out inspection for them. In cases where they appoint their own inspectors, these have of necessity to apply to the War Office Inspection Staff for information, guidance, and assistance in proofs and tests.
4. It may possibly have been suggested that the Colonies experience delay by obtaining stores through the War Office; but the Army Council have pointed out to me that the armament trade is in the hands of a small number of firms, and that to place the orders direct simply enables the contractors to play off one Department or Colony against another, and tends to defeat the object they all have in view. There is only too good reason to believe that the competition of foreign, Powers already leads to high prices, and to the postponement of orders placed by the War Office in order to accommodate rival purchasers; and it is feared that this will be greatly aggravated if there should be additional competition on the part of Colonial Governments. It is to avoid any such competition that orders for warlike stores for the Royal Navy are given through the War Office to the trade.
5. A great deal of the delay complained of is due to the Army Council insisting on interchangeability, which experience has shown to be absolutely essential for service. The necessity of this interchangeability, as well as the importance of standardization throughout the Empire, are matters upon which it is unnecessary to dilate; to ensure this, it is considered most desirable that arrangements for the provision of warlike stores should, in all but the most exceptional cases, be made by the War Office.
6. This matter appears to be one of great importance to the Colonies, and I think that it might usefully be discussed at the next Colonial Con- ference, when the officers concerned could give evidence as to the unfortunate results which have arisen in the past, and which will certainly arise in the future, by the adoption of a course at variance with that which is advocated in this despatch.
40711.
SIR,
No. 2.
I have, &c.,
ELGIN.
CROWN AGENTS to COLONIAL OFFICE.
(Received November 5, 1906.)
[Answered by No. 3.]
Whitehall Gardens, London, S.W.,
November 3, 1906.
I HAVE the honour to refer you to Mr. Lyttelton's circular despatch of the 9th March 1904, in which it is stated that it is desirable in the interests of efficiency and economy that orders for Service pattern ammunition should be placed with the War Office and not with private manufacturers.
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2. Cases have recently occurred in which the War Office have been unable to comply with our demands from store, and in some of these, where the urgency of the demand appeared to require it, we cancelled the order with the War Office and ordered from private firms, who we find can usually execute our orders with despatch. We are uncertain, however, whether the intention of the Secretary of State's despatch referred to is to exclude all dealings with private firms, even when the War Office are unable to supply within a reasonable time, and we shall be glad to receive instructions for our guidance on this point. We may mention for Lord Elgin's information that there is usually a considerable economy in dealing direct with the trade.
I have, &c.,
W. H. MERCER.
40711.
GENTLEMEN,
No. 3.
COLONIAL OFFICE to CROWN AGENTS. [Answered by No. 4.]
Downing Street, November 16, 1906.
I AM directed by the Earl of Elgin to acknowledge the receipt of your letter of the 3rd instant respecting the instructions contained in Mr. Lyttelton's circular despatch of the 9th of March 1904† as to placing orders for Ordnance Stores with the War Office in preference to private manufacturers, and to inform you that Lord Elgin is prepared to leave it to your discretion to make the best arrangements for supply in cases where the War Office are unable to comply with the indents.
I am to enclose for your information a copy of a confidential despatch which was addressed to the self-governing Colonies on the 10th of August‡ last on this subject, and to state that, as the question is to be discussed at the Colonial Conference, Lord Elgin desires you to furnish a memorandum on the cases which have occurred in which delay in obtaining supplies from the War Office has been experienced, or in which any additional cost as compared with the prices charged by the trade has been involved.
118.
SIR,
No. 4.
I am, &c.,
C. P. LUCAS.
CROWN AGENTS to COLONIAL OFFICE. (Received January 2, 1907.)
Whitehall Gardens, London, S.W., January 1, 1907.
I HAVE the honour to acknowledge the receipt of your letter of the 16th of November No. 40711/1906§ and to enclose a memorandum of cases in which delay in obtaining supplies from the War Office has been experi- enced and in which additional cost as compared with the prices charged by the trade has been included.
2. I would take this opportunity of pointing out that the machinery of ordering stores from the War Office is much more complicated than that of ordering from the trade. Four copies of the order, together with a placed; only one is sent to covering letter, are required when the order the trade. The document sent to us when the goods are issued and which takes the place of an invoice for shipping purposes is frequently incomplete or incorrectly priced. Moreover, this voucher has to be copied in this office, whereas a private firm supplies the necessary copies complete in every respect. The receivable order which constitutes a payment voucher is not received, as is usual, when the goods are shipped, "but is held back from three to six months; we have some orders waiting payment now which were actually shipped in May. This means that the examination of these
No. 1.
§ No. 3.
* No. 2.
8288; not printed.
CA