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ANNEX I

BRITISH PACIFIC FLEET AND HONG KONG

Copy of a Minute dated 4th September 1945 from the First Lord of the Admiralty to the Prime Minister.

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Prime Minister.

In your personal minute Serial No. M.44/45, you stated that the question of using facilities at Hong Kong and Singapore for the support of the British Pacific Fleet would be discussed by the Defence Committee. I feel you may like to have the following explanatory remarks when considering the two telegrams to the Prime Minister of Australia, which I have already submitted to you, and which I feel should be sent urgently.

In the coming months, the British Pacific Fleet will have many important duties to perform, not only in ports on the China Coast, but also in Japanese waters and other areas in the Pacific. There is already a force at Hong Kong engaged in controlling the Colony and the Japanese forces which are now surrendering. In many localities where there are important British interests, there will be no means of affording representation of the Home Government and aiding prisoners of war and internees except by sending units from the Fleet Except in special cases, the Army and Royal Air Force will be unable to share these duties. All the ships engaged in this important duty must be sustained with stores and fuel. Undoubtedly the most economical method of doing this is to make full use of the facilities found to be available at Singapore and Hong Kong, or which can readily be rehabilitated. Any work of restoration in these ports will be of value in restarting British trade to China and the East Indies.

In the existing system stores are shipped in bulk to Australian ports and then forwarded to the areas where units of the Fleet are operating. It is of interest that, whereas, the distance from the United Kingdom to Hong Kong is only 2,500 miles shorter than the passage to Sydney, stores which are routed to Hong Kong via Sydney have to be carried no less than 7,300 miles further than by the direct route through the Straits of Malacca.

By shipping the Fleet's requirements direct to Hong Kong not only will there be a very appreciable saving in ships and fuel, but it will be possible for stores to be despatched to the Fleet quicker and less will be locked up in ships on passage. Furthermore, ships using the Straits of Malacca will be operated on fuel drawn from the Sterling Area, instead of drawing on American stocks in Australia as at present.

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