58
Enclosure No. 5
SUMMARY OF PROPOSED TERMS OF SETTLEMENT
His Majesty's Government
1.
2.
3.
His Majesty's Government to waive any claim in respect of advances totalling £2,500,000 made between 1942 and the ro-establishment of Civil Government (paragraphs 2 to 9).
Amounts still in suspense which are directly connected with the war and which include the following:-
Volunteer pay and
pensions
Repatriation passages
£244,500
of non-officials
59,400
Relief and maintenance
payments
449,000
Payments to Civil·
Defence workers
254,500
civing a total of £1,007,400 to bo mot from Imperial funda, together with any further payments of this nature in later Crown Agents' accounts and any outstanding payments in respect of relief cranted in Macao believed to amount to £467,120 (paragraphs 5 to 9).
Claims directly arising from the war which may possibly become payable in the future, to be met from Imperial funds. These include:
(a) Possible claims for com-
pensation in respect of
Government of Hong Kong
2.
3.
motor vehicles requisitioned and destroyed before the 25th Docembor, 1941. Those might total £40,000 but a consid- erable proportion of this would be in respect of vehicles requisitioned by the Services, claims in respct of which would presumably, in any case, be mot from Imperial funds (paragraph 11).
(b) Deposits hold by Treasury on
outbroak of hostilities and confiscated by the Japanese. There may be a liability of some $8,000,000 if the view of the Government's logal advisers is not uphold whon testeu in the Courts (paragraph 12).
The Hong Kong Government not to press for any rofund in respect of oxpenditure during 1938/41 on preparations for dofence, the cost of which, according to the incomplote records available, amounted to $51,654,719 and must, in actual fact, have been i a great deal more (paragraph 30).
The Hong Kong Government not to press for any refund in respect of Exchange Fund income appro- priated between 1942 and the ro-establishment of Civil Government. This amounted to £1,802,059 during the period in question and a further sum of £207,490 was appropriated after the re-establishment of Civil Government (paragraphs 3 and 4).
The whole cost of repair of Government buildings and installations, the construction of new ones to replace those destroyed and the re-equipment of all Government services to bu met by the Colony. The cost of this is estimated at at least $180,000,000 (paragraphs 22, 23 and 30).
If a claim regarding the final advance of £750,000 from Imperial funds after the restoration of Civil Government is contemplated, Hong Kong Government only to refund the balance after doductions in respect of the following items have been made :-
Arrears of salary to permanent officials and ex-gratia pay- ments to temporary officials in respect of period of intern- mont
Shipment of rice to
Military Admini- stration, proceeds of which have already been credited to War Office funds
£10,210,84577
6:
£ 19.7
657 £19,695.10.0
This leaves a balanco of £92,126.12.9 (paragraphs 33 and 34).