values mentioned in Regulation 6(1)(a) rather than to the hire in Regulation 6(1)(a), and would bring the values for requisitioned ships lost into line with
It is impossible now to the values of ships acquired, as described below. establish in Hong Kong that there is any misprint in the printed version, and it is doubtful whether a Court would hold that the possible intentions of the legislators should stand against the printed text.
(c) The Regulations provide in 6(7) for compensation in respect of the acquisition (i.e. requisition for title) of any vessel, either at the
In the case of acquisition commencement of requisition or at a later date.
under a requisition the compensation shall be a sum equal to the value of the vessel immediately before the acquisition, no account being taken of any appreciation due to the emergency or of any bareboat hire or repairs to damage already paid. Although no machinery is provided for turning a requisition for use into an acquisition, it is stated later in Regulation 6(8), that if written notice is issued on behalf of the Government that a vessel is acquired, or if the vessel is sold on behalf of the Governor, it shall be deemed to have been acquired.
(d) No compensation is payable under the Regulations if an owner is insured against a risk which, but for the insurance, would be covered by the requisition or if he is required to be insured under a contract with the Crown against that risk.
(e) Interest is payable under Regulation 12 on suns due from the day on which they fall due until payment at such a rate not exceeding 5% per annum as the Governor in Council may from time to time prescribe by notification in the Gazette. As a result of action taken by the Military Government, by which the Hong Kong Government is now bound, interest runs at the rate of 5% through- out the occupation period and up to a date in about March, 1947, when it was reduced to 2%, at which rate it now stands.
Tribunal and accord it Powers.
(f) Regulations 10 and 11 provide for the constitution of a Shipping Claims - Regulations 13 limits the time for claiming compensation but owing to delay on the Government side advantage could not be taken of this escape.
APPLICATION OF LEGAL BASIS TO PARTICULAR CASES.
7. (a) It would appear that the wisest course under the law, at least as printed, would have been to requisition the nine block ships and acquire them simultaneously (i.e. requisition them for title) as this would (i) have relieved the Crown of any liability for hire and (ii) have reduced the compensation to a sum taking no account of any appreciation due to the emergency.
In actual fact it appears that under the law hire accrued daily from the date of requisition until the date of sinking and that the compen- sation due for loss is to be a sum equal to the value immediately before the
As the value of British ships occurence of the damage which caused the loss. had by 1941 appreciated by about 60% over 1939 levels, the difference could be appreciable. It might however, be held that the words "immediately before" meant on 8th December, 1948 and that "value" meant the value in Hong Kong on that date, in which case, owing to the war situation, the value of the vessels it would seem was virtually nil. Unless this interpretation can be invoked, desirable in the case of the nine block ships to seek to treat them as if they had been acquired under the requisition, oven though they were not in fact so acquired. The ninth block ship, which was turned over for use to the Navy, must be treated as having been requisitioned for use, and, if the law is rightly read as giving a higher valuation to ships requisitioned for use, the only defence would be that it is inequitable to pay more in one instance only. In view of the various ambiguities in the law, it is difficult to see how a strict interpretation of it would work out either for the Hong Kong Government or the Shipowners.
(b) There is no doubt that the Ferries were requisitioned for use, and on the law as printed, their values are to be determined on the higher formula. In their case the question of damage must be taken into account, and it appears from the wording of Regulation 6(1)(c) that the only damage, for which the Hong Kong Government is legally liable is damage which occurred during the period of requisition, so that unless (i) it can be shown that the damage found
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