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Mr. Mayle
We discussed No.12 within the Department some time ago and I submit a provisional draft based on the discussion. I think, however, that I should call your attention to the following points which seem to me to present difficulties in our approach to the Treasury on the lines of the draft.
(1) A final "Malta" grant of £1,500,000.
Would not this give rise to requests for similar grants to the Malayan and Borneo Governments; and in the present position of U.K. finances is there now any possibility of H.M. G. agreeing to such requests.
(2) War Damage.
(3)
If the Malayan Governments obtain a free grant from H. M. G. in respect of a Malayan compensation scheme, then there would be grounds for asking for a grant of a proportional amount for Hong Kong to be used in some form of compensation, possibly in respect of "denial" claims, but at present no final decisions have been reached as regards either the Malayan scheme or as regards Hong Kong recommendation that there shall be no compensation scheme in Hong Kong.
In other words, personally I think that we should tackle the Treasury on points which are applicable to all the Far Eastern Colonies, (such as waiving claims in respect of cost of Military Administration and meeting claims in respect of "denial" schemes); and such specific Hong Kong items as waiving refund of balance of "loan" in aid of administration and the item in para.4(iii) of the draft which cannot as I see it have any undesirable repercussions elsewhere.
The question will obviously have to be considered further and perhaps Mr. Bourdillon should see from point of view of Eastern 'A'
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13 D.B.Pitblads (Jon)
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Memer 24.1.48.
29-1-48
Mr. Pitblado rang me up yesterday and asked
me for a figure for Hong Kong in connection with the discussion which is to take place on Saturday morning at the Treasury of the Malayan proposals for assistance from H.M.G.
I have sent him a statement, of which spares are enclosed in case anyone should wish to take them.
I should like to attend the meeting on Saturday morning as it seems that there may be
a certain