Telegrams

44

: (SHIPPING) SHIPMINDER, TELEX, LONDON."

(Inland Transport) "TRANSMINRY, TELEX, London."

EXTN...

Telephone ABBEY 7711 :

Any further communication should be

addressed to-

THE SECRETARY,

(address as opposite)

and the following reference quoted :-

AT/GEN. 13127.

Your Reference..54126/6/49

(6)

Dear Palmer,

apenser

23 14

MINISTRY OF TRANSPORT,

BERKELEY SQUARE HOUSE,

LONDON, W.1.

23rd December, 1949.

1. I refer to your letter of September last to Colonel Russell Edmands of the Treasury with which y ou enclosed draft despatch to Hong Kong, about claims relating to vessels lost in connection with the defence of Hong Kong.

2. I have no comments to make on the draft except to suggest that in paragraph 4 (iii) the words "or other" might be added after "Service" in order to cover cases where this Ministry might have been concerned. A consequential amendment will then be necessary in paragraph 6.

3. In my discussions with Moberly on this question he suggested that it might help in the consideration of the general problem if I set out on broad lines the principles under which this Ministry has worked in regard to the requisitioning and acquisition of vessels.

4. Ships were, in general, requisitioned under either gross or net charterparties. In the case of the former the vessels were required to be insured against war risks, and compensation for loss by scuttling, to deny the use of the vessel to the enemy, was paid under this insurance. Under the net charterparties all risks, including those of war, were borne by the Ministry under indemnity and in these instances also compensation was paid for loss caused by scuttling for denial purposes.

H. Palmer Esq.,

Colonial Office,

Church House,

Great Smith Street,

S. W..1.

/5. In

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