1 No.51
COLONIAL OFFICE,
Dover House,
5
148
Whitehall, S.W.1.
4th May, 1948.
Dear Fughe,
You will remember that Bourdillon discussed with you over the telephone on the 27th April, the terms of our telegram to Hong Kong regarding Denial Claims in Hong Kong, with particular reference to shipping which had been sunk in order to deny its use to the enemy.
I enclose a copy of a further telegram which we have just received from ilong Kong on the subject. You will see from paragraph 5 that the Governor has postponed the meeting of the Legislative Council until May 11th, in the hope that by then we shall be able to give him a definite reply to the points raised in paragraph 3 of his telegram which he hopes will assist him in obtaining the whole hearted acceptance of the Legislative Council to the terms of our recent financial settlement with Hong Kong.
I mentioned the point to the Treasury this afternoon as they are very closely concerned with this matter and they are naturally anxious, as also are we, that there shall be no danger of the Governor being forced to ask for the terms of the settlement to be reconsidered owing to pressure from unofficial members of his Council who feel strongly on this question of His Majesty's Government's responsibility for denial measures.
L.q. Pughe, Esq.,
Admiralty.
It/