be allowed to submit a claim for an ex-gratia award, You may wish to consider this as a possible solution to the problem.
29
5. I am not clear of the grounds on which the opinion in paragraph (3) on page 4 of the Attorney General's lettur of 17th April 1948 are based; but prima facio, it appears to mo that action proved to have been taken involving compensation under the Malayan Regulations would be a legal liability of the Malayan Governments oven though the action was taken by United Kingdom forces. I note from paragraph 16 of Annexure 1 to your despatch thut the amount claimed under doniol and demolitions is cstimetod et bout 280m, which I understand includes the claims against the Service Departments registered with the War Damage Claims Commission. This $80 millions is subject to reduction by analysis and assessment and by the difficulty of proving claims. In these circumstances it would scom that the $30m which may be considered as having boon clrcody provided as part of the total $475m compensation schone will bo brodly sufficient, if the procedure suggested in this dos patch is grood to; and in view of the measure of assistence already provided by His Majesty's Government towards war damage compensation in Melaye it is most unlikely that further assistance from His Majesty's Government would be forthcoming. You will appreciate that the extra liability, if (ny, will be minimised if you could ensure that a claimant does not receive, 100% componse tion in Court in addition (repost addition) to an ox-gratia payment in vicw of tho rocommendation of the Solcet Committees montioned in paragraph 1, nd also the recommendation that the first $350 of on aword should be paid out orly. This will not be difficult to ensure if it is established from the outset that any legal sword will teko into account any ex-grotic payment already modo.
6. A copy of this despatch is being sent to the Governor, Singapore, and to the Deputy Commissioner General with reference to the Commissioner General's savingram No. 16 of 17th December, 1948, in which he refers to the despatch under reply as setting a fresh complexion on this problem so for us it affects the Borneo War Damage Componsation Scheme. I should be grateful for the Deputy Commissioner General's comments on the problem as it affects the latter schemo, in the light of the gonorel attitude towards the problem suggested in this despatch, and in particular to learn whether, in the light of that attitude, he considers that it will still bu possible for the Borneo Governments to maintain towards the claim of the oil companios for general wor damago compensation, the attitude suggested in my tologram No. 71 of 27th January, 1949 (reported to Singapore No. 81 and to the Fodoration No. 113). Copics of this
dos patch ero also being sent to the Officer Administering the Government of North Borneo and the Officer Administering the Government of Surewok,
I have the honour to bo,
Sir,
Your most obedient,
humble scrvant,
J