7
50% of their claim (i. e. £54,000) should be taken as the final settlement. However they adduce very little fresh evidence in support of such claim. But we never seem to have followed up their suggestion of asking Colonel Walker, who in 1941 was both General Manager of the railway and Chairman of the War Supplies Board, for such recollections as he may have of the nature of the work. I think we should do this. In point of fact, Hong Kong do not really seem to expect to get anything better than the interim settlement; there is a reference in a despatch newly received and registered on 54460/49 to acceptance of this reduced offer on this claim, which is used as an argument for generous treatment on another claim there discussed.
The claims by the Chinese Government -
above
-
(b)
relate to railway materials requisitioned in Hong Kong, where they had been sent for safe keeping. The present position is as follows:-
(a) Vouchers 003, 004, 006, 007, and 008. There is no dispute as to the fact of requisition or the quantities requisitioned. The values quoted by the Chinese are thought to be inflated; against a Chinese claim of £323,689, dar Office have made an offer of £185,847, in complete settlement, and have heard from the London Agents of the Jardine Engineering Company, who are acting in this matter for the Chinese Government that this offer would be acceptable if payment was made in cash, and immediately.
(As this is the Nationalist Government, this proviso is under standable).
However, the War Office wish to link this settlement with the claims due by the Chinese Government, of which the most important is in respect of damage to properties in Kowloon caused by Chinese Government troops, and it is this suggestion which is the subject of the telegram which has just issued on 54488/49. The suggestion that Kwok should accept this solution, as I have said above, is unlikely to lead to any result.
(b) Voucher 005 has not previously been
seen here and we must have war Office observations on it; prima facie it is on a par with those referred to above, and would presumably increase the amount of the War Office offer.
(c) Vouchers 009, 010, 011 relate to
materials allegedly held in Hong Kong
in