SINGAPORE BASE POLICY

Taranaki Daily News, 22 November 1929, Page 9

SINGAPORE BASE POLICY

EMPIRE TO BE CONSULTED 'BREAK’ CLAUSL IN CONTRACT COMMENT UPON OMISSION By Telegraph—Press Assn. —Copyright. Rec. 7.15 p.m. London, Nov. 20. The Prime Minister, Mi'. Ramsay MacDonald, was asked in the House of Com-’ mons to give an assurance that no change of policy as to the completion and establishment of the Singapore base would be made without the consent of the Dominion and Colonial Governments concerned. Mr. MacDonald replied that it was quite obvious that in any rearrangement of the building, programme, regarding which no final decision had yet been made, the subscribing communities must be consulted, not merely by way of being informed, but in such a way that an agreement would be reached. "Wag there a break clause in the main contract for the construction of the Singapore base permitting alteration or modifications in certain eventualities?” asked Commander J. M. Kenworthy. Mr. Alexander: There is no such clause in the main contract, but that does not mean that the Admiralty has no power to alter or modify the work. Commander Kenworthy: Is it not usual to have such a clause? Mr. A. A. Somerville: May not serious claims arise under those contracts if they are considerably altered or modified? Mr. Alexander said he hoped the House would not discuss legal difficulties which might arise. Commander Kenworthy: Was not the previous Government responsible for making a contract without a ’break’ clause? Mr. F. G. Penny: Will the Government be liable for compensation under the contract ? For this no reply was given. Mr. A. V. Alexander, First Lord of the Admiralty, informed a questioner that the total estimated expenditure on the Singapore base was £8,700,000j including the costs of the floating dock. The total expenditure to date was £2,033,000. After allowing for further Dominion and Colonial contributions the ultimate net charge to the navy vote of the present scheme was £6,290,000. Mr. W. L. Everard: Does the Government intend to repay the Dominions their contributions? Mr. Alexander: That is premature. Major-General Sir J. H. Davidson: Were not the site and the contributions given on the distinct understanding that the scheme would be carried out in its entirety ? The Speaker interposed, saying: "That does not arise.”