in respect of proved legal liability of
Government (whether Hong Kong or His Majesty's
Government) or on the other hand, no
compensation at all. These two extremes of.
one hundred per cent or nothing, increase
the difficulty of dealing with the problem,
there is
be
as we have no method by which we can persuaded
LP
claimants) if they are in any doubt as to
the legal aspect of their claim, to forgo
pursuing it on a legal basis.
However •
as the decision to have no War Damage Compensation
scheme was taken on the recommendation of the
Hong Kong Government, we and the Hong Kong
Government must face the difficulty and
be prepared to accept any repercussions.
There
is one exception to this position, as I
understand that if a ship were insured under
the United Kingdom Marine War Risks insurance
scheme, 'denial' is a risk covered by that
scheme, and the Ministry of Transport would
admit payment of compensation in full in
such a case from the Marine Sar Risks
Insurance fund.
3. Apart from that particular category, where
presumably no difficulty arises, the position
appears to be as follows:
(a) Where denial took place without prior
requisitioning, the attitude of H. M. G.
is set out in War Office letter of the
16th of September, 1943. In our despatch
of the 30th May, 1949, to the Federation
(4)
(3)
of
45-