E
7.
8.
In any reparation claim which the Companies may make against H.. Government they shall Live credit for any machinery, parts or other material supplied from outside the Colony and paid for under this Areement.
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All disputes and questions whatsoever which shall either before or during the period of this Agreement or afterwards arise between the parties here to touching these Presents or the construction or a plication thereof or as to the validity of any notice given hereunder or whether those Presents are sti 1 subsisting or not or as to any act, deed or omission of che parties hereto or as to any other matter in any way relating to these Presents or the rights, duties or liabilities of any person therour.dor shall be referred to a single Arbitrator if the parties can agree upon one or otherwise to two Arbitrators to be appointed by the parties respectively and their umpire in Accordance with the provision of the Code of Civil Procedure or any enactment for the time being replacing, extending or modifying the swie".
Two or three minor amendments which were suggested at the final discussion have been incorporated in the draft and it is understood that in its final forn the Agreement is acceptable to both Companies. It is therefore being submitted to the war office and the Colonial Office for a proval and it is suggested that subject to such approval it right reat on this exchange of lettera. I is emphasised however, that the Agreement cannot become operative until it has been approved in London.
I would add in conclusion that in accordance with the request put forward by the Hong Kong Electric Company their view that Clause 4 operates somewhat harshly has been represented to the Secretaries of State for War and the Colonics. It has boen explained that both Companies feel that it would be oquitable for w the Administration to meet the leave expenses of that portion of the staff which would normally be absent under peace tima conditions during a six monthly period and that the Companies take the view that by so doing the Administration would in no sense be paying a duplicate staff.
I art, Gentlemen,
Ir obedient servant,
(sd) K.M.A. Barnett-
for C.C.b. FOLLOWS Chief Financial Advisor
Civil Affairs
The China L1, ht and Power Company, Hong Kon
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