I have heard the chorus sung:
And it's all for me grog/ Me jolly, jolly grog/ All gone for beer and tobacco/ Well I spent all my tin/ down on south Street drinking gin. nor across the western ocean I must ramble!

I'm not terribly familiar with RN regs or customs back in the days of wooden ships and iron men but in the American navy which took it's cue from the British navy, smoking was not unheard of hence the term still in use "The smoking lamp is lit" (Or alternately, not lit)This of course may be scant evidence but there are pictures extant from the American Civil War showing sailors with pipes. Most of those pictures are not taken on monitors but on sailing vessels. (For what it's worth.:~) kindest regards, Neil