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Mr. Carter (Hong Kong Department)
I do not think your assumptions in paragraph 6 of your
minute of 16 August are correct.
(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 HMG 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
I will deal later in this minute with the
from Hong Kong. [1
question whether such assets could be used to meet any claims that
E.C.G.D. might have in respect of guarantees in relation to the
Tunnel.
(c) As regards assets of private individuals, [I agree with you
that th
that 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.
2.
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
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