HWB 21/5
CONFIDENTIAL
ав
(a) If there were to be a proper successor government to
the present Hong Kong Government, agreements would be
made between that successor government and H. M.G. as
regards assets and obligations, and if these agreements
followed the pattern elsewhere, the successor government
would take over all the assets and be responsible for
all the obligations of the former Hong Kong Government. (b) If there is no proper successor Government with whom
agreement could be reached, then it is possible that
H. M. G. would freeze Hong Kong Government assets in the
U.K. and out of those assets presumably would pay first
the U.K. creditors of the Hong Kong Government, and then
amounts due to expatriate pensioners and perhaps allowances
to destitute British subjects from Hong Kong.
(c) As regards assets of private individuals, these are in
a different category and, even though such individuals
might be resident outside the U.K., I cannot see how
Government interference with such assets could in any
way be justified; particularly as in many cases the
assets would belong to British subjects. In my view
such assets could not be treated on the lines that the
assets of enemy subjects have been treated in the past.
As I understand the main proposal, it is that E.C.G.D. should
guarantee repayment by the Hong Kong Tunnel Company of loans made
to that Company by U.K, banks, I do not see how a claim by
E.C.G.D. to be reimbursed sums which E.C.G.D. had to pay in
fulfilment of such a guarantee out of the assets of the Hong Kong
/Government
2.
CONFIDENTIAL