OUTWARD TELEGRAM
FROM THE SECRETARY OF STATE FOR THE COLONIES
54126/6/48
Cypher (0.7.P.)
TO HONG KONG (Sir A. Orantham)
sont 10th May, 1948.
21.45 hrs.
62
131
MOST IMMEDIATE
No.533 secrot.
Vide (65)
1. I am not repeat not clear how you have assumed from my telegram Tbs.498 and 499 that legal liability will ngoessarily arise only in respect of requieitioned vedsole. As regarde denial mecourse in general, I would refer you to the advice contained in paragraph 3 of your savingram 10.651 of 22,20.47, from which I observo that any liability for compensation in respect of danial measures up to 25.12.41 is held to rest with the Hong Kong Government and hence not with H. M.G.
2. Having regard to the present oircumstances of the United Kingdom, and to the assistance already afforded Hong Kong by means of the free grant of £1 million "to easlat the Colony in resolving problems arising out of axpenditure connected with the war", H.H.G. could not consider giving Hong Koog further financial assistance in respect of denial claims.
3. Whether the U.K. Service Departmento can properly accept charges arising in connection with each claina," can only be shown after examination in the light of the existing pracfice of the respective Departments and of the facts in dach case,
4. I propose, therefore, to arrange for the claims for which you have asked H. M. G. to accept liability, in paragraph 5 of your telegram No.437, to be expeditiously examined by local representatives of the U.K. Departmenta concerned, in consultation with the Bong Kong Goverment. The officers will ascertain the facta and report back as soon as possible. Instructions are being sent by Service Departments accordingly.
5. I have been very much concerned at the opening sentence of your telegram No.426 and would urge you to do everything within your power to pravant outstanding issues from obscuring the very real assistance which H.M.G. is affording Hong Kong, including as it does the gl million to which reference ja mado in paragraph 2 above. You will be aware from my telegram No. 532 of the assistance which, following paragraph 3 of your despatch No.281 of 29.21.47, H.M.Q. has under consideration for certain persons who have suffered losses through war damage in Fong Kong-
: