CO129-615-4 Harbour craft used by Hong Kong Government- financial arrangements 30-1-1948 - 12-1-1949 — Page 7

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1. As a result of Ministry of Transport (telephone extension 3089) came over on 15/12 and discussed with Mr.Radford and myself the matter of the small craft now in use by the Hong Kong Government. Mr. Palmer was present for the first part of the discussion, but was called away. Later, however, after Mr. Jones had left, the case was further discussed with Mr.Palmer.

2. The immediate upshot of the discussion with Mr. Jones is in drafts A and B which are for approval.

Mr. Jones explained that his Ministry was not out for its pound of flesh, but had to account reasonably for the craft for which it is disposal authority. If the Treasury said Hong Kong could have the craft for nothing the Ministry of Transport would not object. As to the War Office craft, as draft B shows, this is not a negligible matter anyway. Admiralty bill is not a negligible one however. Here the Ministry of Transport have no direct interest and, so far as Mr. Jones could say, it would seem that the Admiralty know nothing of these craft and have raised no claim about tham.

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