54221/16
S.52905/01
20
26
23rd May, 1946
Dear Mr. Palmar,
I refer to your letter of 9th May to Mr. Janes, on the agreement with the Hong Kong Electrical Companies.
We have since s oben about the question of a rental payment for the six months during which the Military administration used the plant, machinery and buildings of the Company, and you said that under the Hong Kong Compensation Defence Regulations the Government was bound to pay rent for such services taken over under the Military administration. We agree in principle to the payment of rent, but we question the basis on which this rental is assessed in paragraph vi of the agreement at li of the market value of the issue shares of the two Companies at 6th December, 1941. We can see no reason for taking this as the basis of assessment, and we consider that it should be the basis allowable under the Hong Kong Defence Regulations,
Yours sincerely,
Jaus
H. Palmer, Esq., 0.B.E.,
Colonial Office.
Downing Street,
S.W.1.