CO129-584-8 Hong Kong Naval Volunteer Force 16-5-1940 - 5-4-1941 — Page 14

maintaining the K,N.V.R. unit (over and above the cost

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of its equipment, par and rations which the Colonial Government was prepared to meet) would be beyond the

capacity of the Colony. Mr. Rowen said that the Treasury

would not be prepared to agree to meet any part of the cost of this service in the absence of definite figures, and it was agreed that it would be necessary to await

complete particulars of the financial position of Trinidad

befcro this question could be settled finally, taken of the Admiral y viow that the placing of a for ce

at His Majesty's disposal did not in itself affect the

incidence of cost; but further discussion of this point

was postponed until the question of placing at disposal should actually arise.

Note was

5. On the general question of the test of a

Colony'a capacity to pey, the Colonial Office urged that

reserve funds should not bo raided for this purpose.

The reserve Funde hec. been built up against a rainy day

over a period of yea:'s, and in some cases were earmarked

for particular purposes, e.g. the reserve funds in the

Falkland Islands were intended for expenditure connected

with the lend. Mr. Rowan said that he could not speak

with authority for the Treasury on this particular question,

but that personally, having regard to the fact that the

United Kingdom had no reserve funde and was accumulating

an enormous public debt, he would deplore the suggestion

that Colonial rescrr; funds should not be dram upon,

where nece66ary, to reet the cost of this breach of their

war effort.

6. One furthe: point emerged from the discussion,

The Admiralty said thet in Hong Kong they were paying the

cost of the Examination Service. #his is a different

arrangement from that which the Admiralty had suggested

for