File No. DEF.75/51/02

Page 131

261

Mr... Campbell 17/6

Mr... Wallace

176

Permt. U.S. of S.

Mr..

Parly. U.S. of S.

Mr..

Sir

Minister of State

Secretary of State

Your Reference.......

Date..

DRAFT BRIEF FOR THE SECRETARY OF STATE

HONG KONG GARRISON

FURTHER ACTION

Page 131

(P8493) 45337/7500 2MP 10/57 AT&S. 769.

We see no objection to the terms of the paper

D. (58)30 which reproduces the essentials of the note

which the Secretary of State sent to the Chancellor (copy below)

selves the size

Since that note was sent

arrangements have been made for one of the units to

arrive in Hong Kong on October 8th, and for the

second unit to arrive on December 16th. That agreement

has been reached on this question has been due very

largely to the accommodating attitude of the Hong Kong

Government, which has made all the concessions.

2. The position that we are in now is that the

outstanding question is that of compensation for War

Department and Admiralty lands in Hong Kong. It would

be as well if the Secretary of State reminded the

Committee that he will wish to support the Governor's

views on the proper basis for assessing compensation.

This is at variance with the views of Service Departments,

who base their claims for compensation on the market value

of the land, irrespective of the circumstances in which

closely watched

such land came into their hands. They are answbrable

by

in matters of this king the Public Accounts Committee.

3. The Hong Kong attitude to the question of

compensation is that the Services peagotz properly claim

/any

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