59

18 months later, we are still not in a position

to give the Hong Kong Government any indication

of the progress of the claims. We have had

reminders from Hong Kong dated the 14th July and the (31A) and (38)

18th September this year and there is pressure

on the Governor from unofficial members in

the Legislative Council as to what is being

done about these claims. It has occurred to

me that there seems no reason why we should not

push on to a settlement of the Hong Kong

Government claims against H.M.G. irrespective

of the claims and counter-claims which concern

H. M. G. and the Chinese Government, and I would

like to suggest for your consideration that we should

do this. I shall hope to hear from you in the

near future about these claims. If a discussion

would help I should be happy to come round to you.

Incidentally, there appears to be an error

as to the amount of these claims in paragraph 6

of Scarlett's letter of the 20th July. The

claim on behalf of the Kowloon - Canton Railway

is correctly stated as £130,841/9/3, but that

on behalf of the War Supplies Board should, I

think, be £17,328/11/- (or thereabouts), not

£9,090/16/-. The War Supplies Board claim, as

I understand it, includes the freight charges

commission

as well as the Commissioner charges shown in

Annexure A to Hong Kong despatch No. 80 of the

10th April 1947 (c. f. paragraph 2 (iii) of that

despatch).

6. The third point to which I think I should

refer is this. In paragraph 5 of his letter

(21/24).

(5) on '47 file.

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