CO129-591-7 Estimates for 1946-1947 12-12-1945 - 14-3-1947 — Page 154

(a) Hong Kong: I think we have a clear case for

asking that the War Office should bear the cost of administration in Hong Kong up to the date of resumption of civil government. It is true that we asked for the postponement of the hand-over from the 1st of February to the 1st of April, but the War office made no demur to that on financial grounds. The further postponement of the hand-over from the 1st of April to the 1st of May was not

justified by any political consideration and was due solely to an initiative of the Chiefs of Staff;

(b) Sarawak; As you know the hand-over in Sarawak

took place on the 15th April. The fortnight's delay was due to considerations, in no way of a military character, arising out of Parliamentary interest in the matter of cession and the arrangements for the Rajah's return. On the basis of James' letter it could be argued that since the War Office had no responsibility for the delay, the Colonial Office ought to accept the charge, even though the delay was in no way arranged to suit the convenience of the Colonial Office. There could be no question of asking the Sarawak Government to bear the cost of the military administration for the short period involved, and you will recall that in fact no suggestion to this effect was made in the correspondence with the Sarawak authorities

/regarding

ISI