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The Ministry of Communications contend that the action of the Hongkong Government in ruling that all the materials must be reserved for the purpose of meeting their needs for the prosecution of the war in the Mid-East constituted a blanket requisition of all the materials, Further, during the last week or two before the war in the Pacific broke out, large quantity of the rolling stock was actually shipped without any specific requisition being issued a ainst the same. Unfortunately, neither the war Supplies Board, the Ministry of Communications nor ourselves have any record of what materials and rolling stock was shipped at that time.

In view of the foregoing, the Ministry of Communications maintain that the whole of their Materials stored in Hongkong during 1941 were in the circumstances mentioned above, actually requisitioned by the Hongkong Government, and that they are entitled to compensation for the value of the balance remaining in the same manner as for the materials against which specific and official requisitions were issued by the War Supplies Board prior to 8th December, 1941.

As instructed by them, we enclose the following invoices in respect of same:-

Invoice No.009 amounting to 2850,632. 8. 0. covering new. materials in Hongkong against which no specific requisition was made by the War Supplies Board.

Invoice No.010 amounting to £64,817. 0. 0. covering rolling stock and other materials brought from Chinese Railways to Hongkong for safe custody, against which no specific requisition was made by the War Supplies Board.

Trusting that our claims will be duly re istered and to receive payment against same in due course.

Encl Invoices

AHH:LC

We are, dear Sir,

Yours faithfully,

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