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OUTWARD TELEGRAM
3/8
77
Dift.on
54126/6/48
Cypher (0.7.P.)
TO HONG KONG (Sir A.Grentham)
FROM S. of S., COLONIES.
Sent 16th April, 1948.
18.00 hrs.
LUMEDIATE
No.456 Secret
Addressed Governor, Hong Kong.
Repeated Secretary-General, Singapore, No. 299.
High Commissioner, Federation of
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Malaya, No.492.
Governor, Singapore, No.456 (Secretary
General please pass). Governor, North Borneo, No.160. Governor, Barawak,
No.119.
The
Consideration of proposals in your despatch No.292 has now been completed. H.M.G.accept for the reasons given in your despatch No.281, your recommendation, following the report of the War Damage Commission, that no compensation should be paid for war damage in Hong Kong. question of H.M.0. providing any sosistance towards a var compensation scheme for Hong Kong under the declaration of October, 1942 (see paragraph 2 of my telegram to Secretary- General, Singapore No.301 repeated to you as No.457)..does not therefore arise.
2.
H.M.G.are however anxious to give practical. appistance to Hong Kong as evidence of good-will and of their bolief in the Colony's future. The extent of such assistance must of course bo determined on the one hand by H.M.G's ability to help in the light of conditions in the United Kingdom following the crippling war losses suffered by United Kingdom Government and the extremely heavy burden of taxation falling upon United Kingdom tazpayer, and on the other by the rapid recovery and present prosperity of Hong Kong. H.M.G. are accordingly prepared to agree to a ginencial settlement as set out in paragraph 3 below which Would in their view be a reasonable and indeed a generous one.
3.
The settlement would be as follows:
(a) In the first place H.M.G. will not seok any contribution from Hong Kong towards the cost of the military administration:
(b) H.M.G.will treat as free grants the advances made prior to and after the establishment of civil government in Hong Kong, amounting to $3,250,000 in all, except insofar as that sum has been used for the purchase of gloves for re-sale which has resulted in cash receipts by the Hong Kong Government.
(c)