Any further communication

on the subject, please quote

No.207837/45X

and address-

The Controller,

Foreign Trade Department.

Telephone: Gerrard 8640.

239

FOREIGN TRADE DEPARTMENT,

Bridgewater

La******** HOUSE,

ST. JAMES,

Sir,

44899

0.0

S.W. 1

54584

14

November 1918.

49463

15 NOV 1

1. With reference to your letters of September 21st and October 24th 1916 (44899 and 49463 respectively) I am directed by Mr. Secretary Balfour to transmit herewith for the observations of the Secretary of State for the Colonies, copy of a letter received from the Secretary to the New York Far East Outward Conference putting forward a claim for compensation for delay etc. to the vessels mentioned occasioned by the action of the authorities at Penang and Hongkong. Those enclosures which consist of detailed accounts in support of this claim are omitted.

2.

While Mr. Balfour is advised that these claims cannot be sustained at law, since the colonial authorities were acting in professed exercise of the powers which they possessed at the time, he is nevertheless disposed to consider that a prima facie case for "ex gratia" compensation exists.

3.

I am to add for Mr. Long's information, that in the case of the Chinese Prince" the goods were consigned to the Bank of the Philippines, but bore marks which His Majesty's Congul-General at Manila informed the Penang authorities were marks of firms included on March 24th 1916 in the Statutory List; the vessel sailed from New York on April 15th 1916.

4.

In the case of the "Aymeric" the vessel sailed from New York on July 3rd 1916, Rosello having been added to the Statutory List on June 15th in that year and the other consgnees to whom exception was taken, at the game or even a later date.

I am

Sir,

Your most obedient,

humble servant,

The Under Secretary of State,

Colonial Office,

Whitehall,

S.W.1.

Fellest.

for the Controller.

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