proceeds, the balance of which will be placed

in deposit pending a decision on the Soviet

claim to compensation from the British War Risks

In communicting with the Russians

Insurance.

it would perhaps be as well to include a statement

of the expenses due to the Hong Kong Government

on account of the "Svirstroi" for the period

1st January 1947 to 31st March 1948 - viz. 83,984 plus

$1,018.80, total $5,002,80. (vide MacDougall's

(1)

letter of the 25th May, 1948, a copy of which was sent

The

to you with Scarlett's letter of /9th June, 1948)

and to request that, if the Soviet authorities

are unable to agree to our proposal to sell the

(2)

vessels, then the amount due should now be remitted

through their account with Lloyds Bank as in the

case of the cheque just received.

4. In your letter No. N 8391/3636/38 of the

28th July 1947 to the Embassy, Moscow, you suggested

that the Embassy should ask the Soviet Government

if they were willing to accept liability for a bill

(for $1,362) for watchmen on a third vessel, the

s.s. "Sergei Laso", in respect of the period

1st September, 1945, to 31st May 1946, but you gave

the Embassy discretion to omit this enquiry if

they thought it likely to prejudice our chances

of obtaining satisfaction over the "Svirstroi"

and the "Simferopol". In fact the Embassy did make

the enquiry about the "Sergei Laso" (vide the

third paragraph of their Note to the Soviet Ministry

of Foreign Affairs dated 14th August 1947) and,

as results have just shown, it did not prejudice

the

(10)

1947 file

(12) m 1947 file

the

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