CO129-615-5 Harbour craft used by Hong Kong Government- financial arrangements 11-1-1949 - 27-1-1950 — Page 22

Copy.

Enclosure No(3)

TELEGRAM SENT

ENCLAIR.

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From: Governor,Hong Kong.

To: Secretary of State. (No. 1108).

Dated: 21.9.46.

Your telegram No. 861. Small Craft. We were informed that with the closure of the B. P. F. base at Sydney, the Royal Navy could not remain responsible for the maintenance of the craft allocated to us to implement the Admiralty Commitment and, if the Colonial Government did not agree to arrangements for maintenance, the craft would be disposed of elsewhere. As the matter was urgent, and we could not afford to lose these craft, we agreed, as stated in para.4 of Commodore's signal referred to by you, but with the explicit, condition that, we considered Admiralty financially responsible and would take up the question later. Our agreement is therefore irrelevant to the question of financial responsibility, which we consider rests on the Admiralty, on the grounds stated in our telegram No.723.

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