SAVINGRAM
To the Secretary of State for the Colonies.
From the Governor, Hong Kong.
18
Date
No..
(43) a-18830/15/1/0/+6
-2
views of the Unofficial Members of the Legislative Council.
4. At this date when records are by no means easy to piece together, the most straightforward and satisfactory method of settlement would appear to be to allow expenditure to rest where it lies. Under this arrangement the Hong Kong Government would accept full liability for the amount spent on custody, freight, insurance, etc., of fifteen Admiralty vessels and four Ministry of Transport vessels from Australia, i.e. $1,261,224. To this would be added a sum of approximately $552,000 spent on assembly of craft and the provision of spare parts. H. M. Government would accent liability for the cost of the vessels supplied, the cost to be apportioned between the Ministry of Transport, the Admiralty and the War Office as agreed between them.
5.
It is realised that the original Admiralty undertaking was to provide one hundred vessels only of various specialised types. It will be seen that in the event one hundred and seven were supplied, although at one stage (see telegram 723 of 1st August, 1946) it was agreed to reduce the Hong Kong Government's requirements to seventyeight vessels, but this was on the understand ing that they would be of a suitable type. Reference to correspondence in 1945 and early 1946 with the Admiralty the War Office and the Ministry of Transport, which was in most cases copied to you, will indicate the vigour of the Military Administration's efforts to acquire suitable craft. Those specified in the Admiralty directive were not in many cases regarded as satisfactory for the efficient and economical dispatch of the work on which it was intended to employ them and the one hundred and seven vessels that eventually arrived represented the smallest number with which that work could be carried out.
6. It may be argued that the undertaking to provide ( one hundred vessels was a commitment of the Admiralty only and not of the Ministry of Transport or the War Office. Such an argument is not really valid as at the time when negotiations for the supply of vessels was in progress the Ministry of Transport was acting as the disposal authority for the Admiralty and the initial correspondence about the vessels was conducted almost entirely with the Admiralty.
7.
If a settlement of liabilities on the terms proposed in paragraph 4 above can be agreed, this Government would undertake to ensure that the proceeds of sale of any of the vessels would be credited to H. M. Government. Four Ramp Cargo Lighters and one Phoenix Lighter have already been disposed of as no longer efficient or economic, their sale value being about one fifth of the estimated value of such craft as set out in tne enclosure to my confidential despatch No. 19 of 30th
(1)+8 January, 1948. A number of other craft are out of
service and it will not be possible to keep the Tow Boats in commission much longer.
No comments yet.
Private notes are available after approval.