CO129-584-8 Hong Kong Naval Volunteer Force 16-5-1940 - 5-4-1941 — Page 19

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maintaining the RN. R. unit (over and above the cost

of its equipment, par and rations which the Colonial

Government was prepared to meet) would be beyond the

capacity of the Colo 17. Mr. Rowan said that the Treasury

would not be prepare 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 ewait

complete particulars of the financial position of Trinideá

before this question could be settled finally. Fote was

taken of the Admiral y viow that the placing of a forca

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 arie..

:

5. On the gen rel question of the test of a

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

roservo funds should not be raided for this purpes o.

The reserve funds ha. been built up against a rainy day

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

for particular purposes, eg, the reserve funds in the

Falkland Islands ver intended for expenditure connected

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

with authority for the Treasury on this particular question,

but that personally, having rogard to the fact that tho

United Kingdom had no reserve funds and was accumulating

an enormous public debt, he would deplore the suggestion

that Colonial reserv. funds should not be drawn upon,

where neccueary, to reet the cost of this branch of their

war offort.

6

One furthe point emerged from the discussion.

The Admiralty said that in Hong Kong they were paying the

cost of the Examinat: on Service. This is a differere

arrangement from tha which the Admiralty had suggested

for