CO129-615-4 Harbour craft used by Hong Kong Government- financial arrangements 30-1-1948 - 12-1-1949 — Page 57

57

k

317

(12)

54126/6/

exhoot d- (1A)

(12) ~ 54126/6/47

This

and their value as estimated by the Director of Marine. valuation is based on the prices which might have been obtained for them some months ago "as and where lies" and it exceeds the figure given in my confidential despatch No. 292 of the 12th December, 1947, as it covers several vessels, to which it has

only now been discovered that the Ministry of Transport has a claim. It is doubtful, however, whether as favourable prices. could be obtained to-day, and the total of £199,175 includes the valuation of the tugs "Empire Sam" and "Empire Josephine", at present allocated to the Water Police. These vessels are not altogether suitable for this class of work, and the possibility of replacing them by Air Sea Rescue type craft which have advantages in regard to speed, draught and manoeuvrability, is under consideration. In the event of replacement being decided upon, these two tugs would, of course, be handed back to the Ministry of Transport representative for disposal.

4.

It will be observed from the above schedule that a large number of vessels had to be assembled here on arrival and that in many cases important parts were missing. This has caused so much delay that even at the present date a considerable amount of assembly work has still not been completed. Nevertheless, $446,966.00 has already been spent on assembly work and spare parts while it is estimated that a further $75,330 will be required to complete the work. Safe custody and handling charges, together with freight and insurance incurred in transporting certain of the vessels from Australia, have also been met by this Government.

5.

It must be remembered too that the ramp cargo lighters were only designed for a very short life, as it was anticipated that considerable numbers would be destroyed by shellfire shortly after they had been placed in service. The consequence is that, although they have only been in use for approximately 18 months, many are nearing the end of their useful lives and it has proved necessary for this Government to include provision in the 1948/49 Estimates for $540,000 so that a replacement programme can be commenced.

6.

There is a further consideration, namely, that the Director of Marine, as agent for the Ministry of Transport, has transacted business on behalf of the Ministry to the value of over $3,000,000. He has necessarily devoted quite an appreciable portion of his time to this disposal work and the financial benefits to the Ministry have been considerable. Nevertheless, no claim has been presented in respect of his services nor is any such action contemplated.

In my confidential despatch No. 292 of the 12th December, I expressed the view that, having regard to the fact that these craft were supplied from stocks accumulated for the general purposes of the war and were utilised to replace vessels removed or damaged by the Japanese, it was unreasonable to charge the Colony with their value. I know that this view is shared by the Unofficial Members of Legislative Council and I trust that, after giving consideration to the further points made in the present despatch, it will be found possible to waive any claim against this Government in respect of these vessels.

I have the honour to be, Sir,

Your most obedient, humble servant,

Mhauskan

GOVERNOR.