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MINUTES.

2. Eleventh (Final) Report.--A revised draft of this report was considered, and, subject to a few minor alterations, finally approved for submission to the Treasury.

Mr. Jones mentioned that the Colonial Office had intimated to the Treasury that, on account of his services being required in another capacity, they were unable to consent to his acting as Secretary to the Committee beyond the 30th November next. In these circumstances it was decided that an advance copy of the report should be forwarded to the Treasury, without waiting for the completion of the appendices, to enable an early decision to be taken in regard to the future of the Committee, and that the signed copy, with the completed appendices, should follow when practicable.

3. Further volume of Minutes, etc. It was agreed that, upon the completion of the above-mentioned report, steps should be taken for the issue of a further. and final, volume of the papers printed for the use of the Committee. The recommenda- tions of the Secretary concerning the arrangement and contents of the volume were approved.

4. Mr. Evans desired to place on the record of the proceedings of the Com- mittee a recognition of the skill and ability with which the duties of the Chairman had been conducted during the whole life of the Committee. He felt that a great debt was due to Admiral Sir E. Slade, for the businesslike and courteous way in which he had discharged the duties of his office.

5. Mr. Evans also wished to express, in the names of himself and the other members of the Committee, their gratitude to the Sub-Committee. consisting of Mr. Holt and Mr. Tennyson. for the able way in which they had lightened the work of the Committee during the last two years.

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II. APPENDICES

APPENDIX A.-REPORTS.

(1)

TENTH INTERIM REPORT OF THE OVERSEA PRIZE DISPOSAL

COMMITTEE.

May it pleasE YOUR LORDSHIPS,

THE Committee beg leave to submit the following further report in reply to the Treasury letter of the 10th July, 1916, concerning various outstanding questions relating to expenditure in connexion with prize proceedings. Question (a) in that letter, on the subject of the payment of fees or other remuneration to officers of Prize Courts and other officers performing services in connexion with matters of prize, has been dealt with in the Committee's Sixth Interim Report, and they now propose to deal with the remaining questions set out in the letter.

They have ventured in certain cases to go beyond the actual letter of the questions referred to them, and to add their observations upon certain other outstanding financial questions of a general nature affecting matters of prize.

2. The Committee regret the delay which has arisen in completing their reply to the letter under reference, and desire to explain that they felt unable to report effectively upon the matters left in abeyance pending an indication of the views of His Majesty's Government upon the paramount questions of policy connected with the destination of the proceeds of condemned prizes. These questions, so far as the Committee are aware, remain undecided, except in so far as they have been settled by the Naval Prize Act, 1918, but the Committee feel that it is now desirable that they should submit a report without further delay. To deal completely with the position as it stands at present the Committee would find it necessary in some cases to submit alternative recommendations, but they have thought it most convenient on the whole to assume, as a definite basis for the purposes

APPENDIX A.--REPORTS.

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of this report, that the Oversea Governments have no interest, as of right, in any prize or earnings of prize, whether Droit of the Crown or Droit of Admiralty. The recommendations set out below, being drawn up on this basis, must consequently be regarded as liable to modification, according to the circumstances, if it should eventually be held that Oversea Governments have an interest in the corpus or earnings of prize.

Incidence of cost of telegrams in connexion with matters of prize.

3. Reserving for a moment the case of telegrams which might be charged to the Naval Prize Fund, the Committee consider that no action is necessary in regard to telegrams despatched by Departments of His Majesty's Government, since the ultimate incidence would be on the Imperial Exchequer however distributed between the various Departments. Similar considerations apply in the case of telegrams despatched by representatives of His Majesty in foreign countries.

4. With regard to the cost of telegrams despatched by Oversea Governments, the Committee recommend that, in the absence of special circumstances, reimburse- ment should be made from the Imperial Exchequer in cases where claims are advanced. The Committee understand that a few claims have already been made in this connexion, but they do not anticipate that many of the Oversea Governments will prefer claims in respect of expenditure on telegrams.

5. With regard to the possible recovery from the Naval Prize Fund, both as regards telegrams from and to this country, the Committee take the view that the sum which might, upon a detailed investigation, prove to be properly attributable to the Naval Prize Fund would be only a small proportion of the total in each case, and would not justify the considerable labour and expense which would be entailed in the preparation of an account.

Cost of printing reports of Prize Court proceedings.

6. Although printed reports only are mentioned in the reference, the Com- mittee desire to include in their recommendation the incidence of the cost of the preparation of sets of Court Orders which have been forwarded to this country.

7. The Committee understand that the reports or sets of Orders have been furnished as the outcome of requests by His Majesty's Government, and this being so the Committee consider that expenditure in connexion therewith should, where claims are put forward, be refunded to the Oversea Governments from the Imperial Exchequer. The sets of Orders seem to have been prepared directly for the benefit and at the request of His Majesty's Government, and the number of copies which the Oversea Governments have been asked to supply of the printed reports suggest that such reports were desired for circulation to oversea territories in which Prize Courts have been established as well as to the interested Departments of His Majesty's Government.

8. The Committee do not consider that any Departmental adjustment need be made in respect of the cost of reports printed in this country..

Expenses incurred in the preparation of evidence in the United Kingdom for use on behalf of the Crown in Oversea Prize Courts.

9. Expenditure under this head prima facie represents legal expenses which, even if connected with Droits of the Crown, are specially excepted by the Naval Prize Act, 1918, from being a charge upon the Naval Prize Fund. The expendi- ture is incurred with a view to establishing the Crown's claim to Prize, and as such should be borne by the Imperial Exchequer.

Expenses incurred in connexion with the examination of vessels released without being made the subject of Prize Court proceedings, including the cost of discharge and custody of cargo therefrom.

10. The Committee are of opinion that, inasmuch as the orders for the deten- tion and examination of ships or cargoes at oversea ports have emanated from His Majesty's Government, it follows that all expenditure in this connexion, when not recovered from the shipowner before clearance is granted or recoverable sub- sequently from the proceeds of sale of any cargo detained, should be borne by His Majesty's Government and not by the Oversea Government. This would extend

to any liability (including any sums awarded as damages) resulting from actions by shipowners and others claiming compensation for demurrage, etc.

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