The Comptroller-General of Customs has forwarded me the following minute for advice:

The amendment of the Navigation Act suggested by the Secretary to the Navy would not, in my opinion, effect the purpose desired.

2. Part I of the Merchant Shipping Act 1894, relating to the registry of British ships, is given application, by section 91, to 'the whole of Her Majesty's dominions, and to all places where Her Majesty has jurisdiction'. No legislature of any British possession has any power either by Act or by regulation to modify or amend the provisions of this Part.
3. Section 80 of the Merchant Shipping Act 1906, to which the Secretary refers, provides that His Majesty may by Order in Council make regulations with respect to the manner in which Government ships may be registered as British ships for the purpose of the Merchant Shipping Acts. It goes on to say that: 'Nothing in this Act shall affect the powers of the Legislature of any British possession to regulate any Government ships under the control of the Government of that possession'. This latter provision means, in my opinion, that the legislature of a British possession may legislate directly as to such matters as management, control, surveys, manning etc. of Government ships belonging to that possession, or it might enact that certain local Acts should apply to such Government vessels as though they were British ships registered in that possession. It could not, however, give to any vessel which was not capable of being registered under Part I of the Merchant Shipping Act 1894 the status of a British merchant ship while on the high seas or outside its own jurisdiction.
4. Something of the same difficulty occurred when the first vessels of the Commonwealth Government Line were purchased. It was found that the registers could not be transferred to the Government of the Commonwealth, as such. The difficulty was got over by registering them in the name of William Morris Hughes, the Prime Minister, he having executed a declaration of trust declaring himself to be the trustee of the Commonwealth in respect of the vessels.
5. It is suggested that in this instance a somewhat similar course might be pursued. That is to say, that the Biloela and Kurumba might be registered in the name of the Prime Minister or of the Minister for Defence, and their names removed from the Navy List. They would then become, in the eyes of the law, merchant ships pure and simple and as such would be subject, whilst within the jurisdiction of the Commonwealth, to the provisions of the Navigation Act relating to ships registered in Australia, and whilst outside our jurisdiction to the provisions of the Merchant Shipping Acts regarding British merchant ships registered in a British possession. It would not, under any circumstances, be possible, I think, for the vessels to be at the one time Navy vessels and merchant ships, claiming the status of whichever at the time might be more convenient.
6. It is suggested that the memorandum from the Navy Department be acknowledged and the Secretary informed that the matter will receive consideration, and that the file be then referred to the Secretary, Attorney-General's Department, for comment on the points dealt with above.

The suggested amendment of the Act is as follows: Section 3 is amended by adding the following:

Provided that the Governor-General may make regulations with respect to the manner in which ships belonging to the Navy of the Commonwealth may be registered for the purposes of this Act, and this Act, subject to any exceptions and modifications which may be prescribed by regulation, either generally or as respects any special class of ship belonging to the Navy of the Commonwealth, shall apply to ships belonging to the Commonwealth Navy registered in accordance with these regulations as if they were registered in the manner provided by this Act. I think the proposed amendment is undesirable seeing that the registration of ships throughout the British dominions is dealt with in the Merchant Shipping Act 1894.

The Biloela is already registered at Sydney and possibly the Kurumba is also registered but as to the latter I have no information. In any case it would appear that the same facilities exist for the registration of the Kurumba as the Biloela.

If it is desired that the vessels should become subject to the Merchant Shipping Act and Navigation Act for all purposes it would appear necessary to take away their status as fleet auxiliaries and, as suggested in paragraph (5) of the above minute, to remove their names from the Navy List.

[Vol. 19, p. 153]