DRAFT SAVINGRAM

GOVERNOR,

HONG KONG,

SECRET

48

Your telegram No. 763 Secret.

Soviet Vessels.

A cheque has now been received from

the Moscow Narodny Bank for the sum of

£254:15:0 in payment of the charges for the

maintenance of watchmen on board the

"Simferopol" and "svirstroi" for the period

1/9/45 to 31/12/46.

This is being forwarded

to the Crown Agents for credit of their

Hong Kong Government account.

2. I am advised that it is by no means

clear that S. 27 of the Merchant Shipping

Ordinance No. 10 of 1899 gives the Hong Kong

Government a right to dispose of the vessels

without Soviet agreement simply in order to

re-imburse themselves for expenses incurred

in maintaining watchmen on board. I do

however share your view that Soviet agreement

should be sought to the sale of the vessels

on the terms proposed in MacDougall's letter

of the 25th May, 1948, to Sidebotham and the

Foreign of ice are taking steps accordingly.

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