an underlying implication in these
representations which we have received
from time to time that any expenditure
arising out of the war in particular if
it was incurred as a result of action of
Imperial Forces, should automatically be
borne by H.M.G. I feel sure that on
consideration you would agree that to
accept such a principle would involve
H.M.G. accepting a liability which would
be quite beyond its resources there.
The present burden borne by H.M. G., as
indicated to some extent by the crushing
burden of taxation, was incurred at least
in part as a result of our war efforts in
Europe and in the Far East which assisted
to a large extent in the liberation of
Hong Kong. Following the liberation, Hong
Kong has enjoyed a period of great
commercial prosperity and in many ways is
in a more fortunate commercial and financial
position than H.M.G. at the present time.
I feel sure that you yourself fully
appreciate all the above factors, but it is
·
with regret that nevertheless certain elements
locally still appear to consider that H.M.G.
n
should accept liabilities which were ineluded
in the financial settlement.
uded
May I also take this opportunity
of referring to your savingram No. 404 of
the 14th June 1948. The claims referred to
in that savingram appear to relate to the
Volunteer Forces. Expenditure relating to
has
those Forces have always been treated as a
charge on Hong Kong Government funds and
as indicated above it would not be possible
/to
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