CORY

From: T. Jackson,

Messrs. Preece, Cardew & Ride

Consulting Engineers,

8, Queen Anne's Gate,

Westminster,

London, S.W.1.

5:2

To: Col. Thomson,

Deputy Chief Civil

Affairs Officer (Civil)

Receipt must be acknowledgeg

For official action

Dear Sir,

In accordance with your

fbal instructions of the 23rd and 24th November, I have now completed my assessment of the rehabilitation of the Plant to be operated by the China Light & Power Co., and The Hongkong Electric Co., Ltd., on behalf of The Civil Affairs Administration and attach hereto triplicate copies of my report.

2.

It is understood that the responsibility of the Administration is related only to such plant as is essential to ensure continuity of supply and distribution of electrical energy up to a capacity to be determined and agreed between representatives of the Engineering Staff of the two Companies and myself.

3.

It is further understood that the Administration does not hold itself responsible for the rehabilitation and maintenance of such plant as is not required to meet the agreed commitments beyond March 1946.

4.

So far as the plant required to meet the agreed commitments is concerned, it is understood the terms of reference do not include damage due to bombing or shelling or other Military damage whether caused by the British, American or Japanese. It does however include damage due to Japanese abuse, lack of maintenance or other similar cause.

It is understood that rehabilitation of plant is intended to convey that it is to be repaired and put back into and maintained in condition not superior to that in which it would have been found in March 1946 had there been

no war.

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6.

It is also understood that the Administration holds itself responsible for the rehabilitation up to the above mentioned standard notwithstanding the fact that it may not have been practicable to effect such rehabilitation by the time that the plant is handed back to the respective companies.

Having in mind the general policy laid down with regard to the assessment of the reasonable condition of the plant it is considered that the question of spares should be dealt with in a somewhat similar manner. And it is agreed that a lump sum payment of £1,500 to each company shall be considered as a fair and reasonable contribution on behalf of the Civil Administration in liquidation of their responsibility in this connection.

7.

R.

That is to say the China Light & Power Co. and The Hongkong Electric Co. shall be permitted to order such spares as they consider necessary to cover their normal long term policy and the Civil Administration shall reimburse each company to the extent of the abovementioned £1,500.

The various matters have been discussed with the engineers of the respective companies and the conclusions reached are agreed between us.

8.

Copies of these reports have been handed to the respective companies.

9.

Yours truly,

sgd/ - TUDÓR JACKSON.

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