CO129-622-8 Pre-war claim on Admiralty for supply of flour 21-10-1949 - 9-3-1950 — Page 15

Sub-enc. to Enc 5

Enclosure 11.

6.

2

Although the correct weight of flour

requisitioned (355,500 lbs, representing 7,255 sacks) was specified in the claim submitted to the Naval Authorities in 1946, through an oversight it was wrongly stated that this weight was equivalent to only 4,400 sacks. This error arose because, although the réquisition was made out for 355,500 lbs, it was endorsed to the effect that 4,400 sacks had actually been delivered. In the early part of 1946, Government Departments were still very short-staffed, and much of the staff was inexperienced.

It therefore seems to have been wrongly assumed that 4,400 sacks represented the full amount requisitioned, and the fact that 2,855 sacks were included in a separate requisition was over- looked. As the claim was calculated on a basis of $8.63 per sack, only $37,972 was claimed instead of $62,610.65 (exclusive of interest).

17.

It seems clear that legal liability rests with the Naval authorities for the full amount requisitioned at their request, even though it is not possible at this late stage to prove that the balance of 2,855 sacks passed into their physical control. Even if the godown warrant for this balance was not handed to them before the Capitulation, it would have been sent to them at any time on request.

8.

The total sum paid out by this Government on behalf of the Admiralty to Messrs. L. Dunbar & Co. amounts to $74,046.97, and this is the extent of the refund now claimed by this Government. A statement showing in detail how the claim of $44,907.87 (including interest) is made up in respect of the consignment of 4,400 sacks of flour forms a sub-enclosure to enclosure (5). A similar statement in respect of the balance of 2,855 sacks is attached as enclosure (11).

9.

Even stronger than the legal liability, however, is the moral liability. I conceive it to be the duty of the civil government in time of emergency to allow no consideration of procedure to delay its officers in the satisfaction of Service requirements, but to act on informal and even verbal requests coming from responsible Service quarters. But the corollary of this must, I submit, be that the resulting obligations shall be fully honoured by the Services concerned. If past obligations of the kind mentioned in this despatch are to be repud- iated or haggled over, it will destroy the basis of confidence on which alone full co-operation can be extended, and may compel this Government even to defer action on future requisitions until full assurance of indemnity has been obtained in writing. I am sure that you would deplore, as I should, any development of this nature.

10.

I should be grateful if you would make such representations as you may see fit to the Lords

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