CONFIDENTIAL

4. Descendants of United Kingdoa nationals who were deprived of their property will be able to register clains provided that the conditions set out in Articles 3 and 4 of the Order are

fulfilled.

5. The Foreign Compensation Comission (FCC) will be producing an application fora. This will be in two parts: Part I, in which an applicant will have to give basic details about matters such as his nationality, the property for which he is claiming and so on, and Part II, which is sent to applicants once their basic eligibility to register a clain has been established and which asks for more detailed information. Copies of the FCC's application for is should be with you in Hong Kong by 5 January, the date on which registration will begin.

6. As this is an ad.inistrative exercise designed to facilitate our presentation of clai is to the Chinese and will not in any way prejudice the rights of applicants, it was thought that the question of converting all values into sterling could be left aside until the registration is complete.

7. I hope that this covers all the points which you and the Registrar General hou on the draft Order, but I shall, of course, be happy to answer any further queries which either of you may have.

cc:

Mr Paul

FED

Mr Willia.son HK GD

Mr Underwood

Clains Department

CONFIDENTIAL

CA Wholersley

Assistant Legal Adviser

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