but see para. 3 (~) Allan's Report A-(88)
m1948 file. I
not quite optimistic M. Andilin due
thing
b.
Mr.Wallace
I agree generally with the line taken by Mr.Palmer, and I think he has done very valuable work on this difficult problem. I have, however, considerably toned down the latter part of paragraph 4 of the top draft. As originally drafted, this paragraph reads rather strangely side by side with the other draft, in which we give Hong Kong the impression that the chance of further assistance from H.M.G. is remote. while I am quite prepared to keep the door open in our
Moreover, correspondence with the Treasury, I doubt whether the case for further assistance for Hong Kong is very powerful. There is no escaping from the fact that Hong Kong is both prosperous and under, taxed, It is true that Malaya has recently received an enhanced measure of assistance from H.M.G. but this was in relation to an established need, and Hong Kong's need is in my view far from established. We must, of course, wait until we know the amount of the sums in question, but my personal bet is that this may turn out not to be very large. difficulty of proving legal claim at this stage must be
The extreme, and I think a great many Hong Kong firms, given their general prosperity, will simply not take the trouble to try. That is a personal view, and I may be wrong. however, I do not think we should be justified at present in
In any case, saying any more to the Treasury than I have suggested in the. revised paragraph.
1.T.B
.m.
Pofemer
5. 7. 49
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