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this would I think have to be done semi-officially. Otherwise, we should have to get the terms of the reply agreed with the Treasury who have, of course, already had a copy of the Governor's despatch, in which he first raised the question.
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I am not sure myself whether it would not be better to attempt to get Treasury agreement in principle to the claim of these territories for further grants of appropriate amounts in each case from the Exchequer, leaving the actual amounts and the manner in which the grants should be made,
e.g. by conversion of loans-in-aid or contribution to a a fund for compensation for war damage to be settled later on. I personally think we could make out a strong case for this. These territories which made their defence contributions before the war and which, in the event, could not be defended and consequently suffered destruction and devastation and severe financial losses by reason of a long occupation by the enemy, certainly have as much claim on H. M. G. as Malta. In the light of H.M.G.'s contribution of £150,000,000 to U.N.R.R.A. and of the setting aside of £120,000,000 for Colonial development, it is indeed difficult to see how the claim of these territories for grants to assist in rehabilitation can reasonably be resisted.
I pass through Mr. Paskin, who will wish to add his views so far as the Malayan Union and Singapore are concerned. If he agrees with my view that we should take the matter up in principle with the Treasury now, he will no doubt also consider whether some reference should be made to the special factor in the case of the Malayan Union, namely, the quicker the rehabilitation of the territory, which the contribution proposed above would naturally help, the sooner will it be restored to its pre-war position of one of our principle dollar earners.
Shempla
12.12.46.
54. From Freasury
12/12/46
As I understand it, the conclusion which we
reached in the discussion on 55358 was that no useful
purpose would be served by an approach to the Treasury
with a proposal that free grants should be made to
the Far Eastern Colonies, merely as a "political
gesture".
The reception which any such approach to
the Treasury would have received has been clearly
brought out in our later discussion, and correspondence
with them on 55178/10/46.
/On