From The Minister of State

Foreign and Commonwealth Office

London SW1A 2AH

Peter Blaker MP

HKK 430/1.

dis AW/ BRAM 1/4 "Dear Robert,

18 February 1980

المشكل اللNw

NWill

8/2.

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Following my letter of 7 February, I have now heard from the Hong Kong Government about the case involving your constituent, Mrs C V Penhearow.

As you know, Mrs Penhearow claimed from the Hong Kong Government sums of £281.52 and £47.32 repre- senting the losses she had suffered because of exchange rate fluctuations between the time of her husband's death and the time she received payment of, respectively, arrears of salary due to him and a refund of an overpayment of Hong Kong income tax.

In considering these two claims, the Hong Kong Government have had to take into account the fact that the sums due to Mr Penhearow's estate were for payment in Hong Kong dollars. I hope you will agree that they cannot be expected to accept responsibility for losses caused by exchange rate variations, provided that payment was not unreasonably delayed. (Any precedent of this sort would obviously have wide implications, both for Government and individual, given the possibility of fluctuation either way.)

Viscount Cranborne MP House of Commons

/I have

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