5
-
4h4
37
55178/19/47
trusted but was forced to yield to superior force. It is therefore contended that any claim that holders of deposits may have lics against possible reparation payments by Japan and not against this Government. It is very probable that a case will shortly be brought before the Courts as a test case, and should the view of the Government legal advisers not be uphold, a liability which is roughly estimated at $8,000,000
will be incurred.
13.
There may also be a commitment amounting to possibly $750,000 in respect of rents of buildings requisitioned on the outbreak of hostilities. Although the period was short the total of the claims may be large in view of the considerable number of blocks of flats requisitioned to accommodate refugoos after the fall of Kowloon. So far, only four claims have been received but it is still possible that further heavy claims y be presented, approximately totalling the figure indicated above. It is indeed even possible that there may bo a claim in respect of the contents of these buildings which were afterwards looted.
14.
I do not propose to touch on a further class of claim, namely, in respect of vessels sunk and other measures taken to deny facilities to the enemy. I assume that such claims will
be met by the Service departments which is sucd orders for the destruction (my confidential savingram No. 651 of the 22nd October refers).
15.
There are, of course, many outstanding claims relating to rice supplied to this Colony prior to the Japanesc attack. There were also shipments from Hong Kong to Shanghai which have not yet boon paid for. The total net commitment is still uncertain but it is unlikely to exceed $2,250,000 and if outstanding sums due from the now defunct Shanghai Municipal Council finally materialise, it will be a good deal loss. am not suggesting that this should be a charge on Imperial funds as most of the supply was used before hostilities commenced and, although large stocks word seized by the Japano se it is possible that part at least was utilised for the Stanioy Internment Camp.
16.
But there is another class of claim which might, I consider, properly be regarded as forming part of the gonoral cost of the war. On the outbreak of hostilitics the Hong Kong Government requisitioned all stocks of foodstuffs but allowod the firms concerned, such as the Dairy Farm Ice and Cold Storage Company, to retain the food in their stores. Practically none of these foodstuffs was used and they were scized in due course by the Japanoso. Recently the original requisitions or photostats have been produced, and as the sc constituted legally enforceable claims, they were met after they had becn suitably scaled down to allow for foodstuffs sold to the public during the course of hostilities, the proceeds of which should have been credited to Government. These claims were finally settled for $5,864,066.23 and I trust that this may be accepted as a charge against Imperial funds as part of the general cost of the war.
17.
Connected with these claims in respect of foodstuffs are the funds secrctly advanced to Dr. Selwyn-Clarke from various sources in the early days of the occupation, to enable him to send much-needed supplics into the Stanley Internment Camp, and also ccrtain suns borrowed by Sir Franklin Gimson. These advances, to which reference was made in paragraphs
55259/12/46 (a) and (b) of the cnclosure to your despatch No. 24 of the
28th January, 1947, have now been repaid and total £89,271.16. 0. If these supplies had boun parachuted into the camp instead of being sent in by a ground organisation, the cost would, without question, have boon charged to the general war