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in 1941 to manufacture all missing parts, to sort, m rk and prepare existing materials and to deliver all parts on board ship, but that owing to the incidence of the Japanese war the missing parts were, in the event, manufactured not in Hong Kong, but in India? Or was it in fact never intended that the Kowloon-Canton Railway (British Section) should do more than sort, mark and prepare the existing materials and deliver them on board ship?
40 So far as the War Supplies Board claim is concerned we agree that it is not possible, at this stage, to formulate a figure in full and final settlement and we think that in the circumstances as you suggest, the views of the Hong Kong Government might well be sought on an interim settlement. Since however the freight charges plus 2 commission on the admitted Chinese and British Section's claims come to (if my figures are right) £13,081, might we not with safety sugest £12,500 as the figure for the interim settlement of this claim?
5. Perhaps the simplest and quickest method of settling the points I have raised would be by discussion. If you agree and would ring me up, we might arrange a mutually convenient meeting.
6. I am copying this letter to Coates (Foreign Office) and Atherton (Treasury) who, I believe, has succeeded
#ass.
b. 1. J.
(F.I.J. Wallace.)