[David_Hayward (RIP)]

The procedures as regards financial adjustments between the UK and Commonwealth of Australia Governments daye back to a Memo dated 18th March 1940 by the Secretary to the Department of Defence Co-ordination. Basically it set out what was to happen about expenses, etc. but the relevant part is that payments made in respect of assesses values of equipment and supplies drawn by the 2nd AIF on British Ordnance and Supply Depots for the issue of equipment and supplies. The arrangements, paraphrased, were that on arrival in Jerusalem instructions from the War Office were submitted by the Command Paymaster, British Forces in Palestine, directing that claims for all supplies of materials etc issued by the British to the Australian Contingent was to be passed to the War Office for settlement between the two Governments.

A 24th December 1941 Memo states that the procedures for supplies for the AIF Abroad or Forces of other parts of the E,pire was that settlement would be effected in sterling in London by the UK Ministry of Supply and the supplying country, Australia, would be responsible for sendign the necessary advices to its representative in London to enable settlement to be made. This is as per memo for settlement of accounts in respect of transactions authorised by the Eastern Groupe Supply Council forwarded to the High Commissioner's office from the Secretary of State for Dominion Affairs on 15th October 1941. Basically the M of S dealt with all supply orders, then the Ministry recovered the costs from the consignee. Provision of requirements for all land forces in the Mid-East, East Africa and Malaya were co-ordinated by the War Office through local commanders. The War Office was to adjust seperately with members for the provision made for members' forces in the Mid-East, East Africa and Malaya. As from 1st december 1940 in the case of the Mid-East, costs of all supplies shipped from Australia were to be recovered from the UK Government. All issues of supplies to the AIF were therefrom be from stocks on charge to the UK Government and included in the per capita rate payable by Australia for the maintenance of its troops abroad.

Explanation: the British took over all supply orders, and then sorted out the costs later through the High Commission in London who then sent the bills back to Canberra. The Brtrish would supply and maintain the forces, and the Australian Government reimburse the British for its forces' maintenance.

This seems to explain what happened as regards vehicle supplies: see next instalment. However, note that the British had agreed that everyone would comply with the agreement that the British Ministry of Supply would do all the ordering, etc. and the War Office would arrange supply in the three theatres mentioned. Any Australian supplies used were to be paid for by the British who then sent the bill back again!