OUTWARD TRA, GULAB
Aft.on
125/6/48
Cypher (0.7.P,)
TO HONG KONG (827 A.Grantham)
PROM S,Of Saf COLONIES,
Bent 16th April, 1948,
IMMEDIATE
No.456 Seoret
',
18.00 hrs,
36/41
188
Addressed Governor, Hong Kong.
J
Repeated Secretary-General, Singapore, No.299.
High Commissioner, Federation of
12.
#
Malaya, No.492.
Governor, aahgapore, No.456 (Secretary
General please pass): Governor, North Borneo, No.160. Governor, Barovek,
No.119.
The
14 Consideration of proposals in your despatch No.292 has now been completed. H.M.G.accept for the POLSCns given in your despatch No. 281, your recommendation, following the report of the War Damage Commission, that no ecmpensation should be paid for yer damage in Hong Kong. question of H.M.G. providing any analstance towards a war compensation scheme for Hong Kong under the declaration of October, 1942 (see paragraph 2 of my telegram to Secretary- General, Bingapore No.30 repeated to you as No-457) does not therefore arise,
22 H.M.e.ars however anxious to give practical aBoletance so Hong Kong se evidence of good-#111 end of their belief in the Colery's future, The extent of such 2g8istance much of course be determined on the one hand by H.M.C`s abill by to help tu the 1ight of conditons in the United Kingdom following the crippling war loases suffered by United Kingdom Government and the extremely heavy burden of taxation falling upon United Kingdon taxpayer, and on the other by the rapid recovery and present prosperity of Hong Kong.
H.M.G, are accordingly prepared to agree to a ginancial settlement as set out in paragraph 3 bolow which would in their view be a reasonable and indeed a renores
3
Th
The settlement sonld be as follows:
(a) In the first place H.M.0. will not seek ary contribution from Hong Kong towards the cost of the military administration
(b) HM.Q.will treat as free grants the advances made prior to and afver the establishment of civil government in Hong Kong, mounting to £3,250,000 in all, except insofar as that sum bag been used for the purchase of Blocos for pe-bale which has resulted in cash receipts by the Hong Kong Government&
(c)