16

Governor's:

it has been possible to collect some further

though indirect evidence of the type of material supplied for

This consists of a letter from

preparing the 600 wagons.

Mr.L.C.Su, Managing Director of the South China Iron Works Ltd.

to the General Manager of the Kowloon-Canton Railway.

Contracts

totalling approximately $900,000 are believed to have been placed

with this firm and with Messrs. Liu Ho Kou Iron Works Ltd. and

Mr.Su indicates the type of article which his firm was asked to

manufacture. This clearly shows that the Kowloon-Canton Railway

in preparing the 600 wagons for fabrication,had more to do than

"sorting, marking, preparing and delivering to ship". Furthermore,

it is known that the requirements of the War Supplies Board were considered of sufficient magnitude to justify the engagement

temporarily of a Chinese Engineer to supervise their supply and in particular, to ensure that the 600 railway wagons were properly

completed and shipped......." I attach a copy of the letter to

which the Governor refers.

pst excleanse to (11)

The War Office on the other hand, maintains that this

interpretation of the matter is not correct and that Hong Kong did not in fact incur the cost of manufacturing the missing materials to complete the fabrication of these 600 wagons. They say that the missing materials were not manufactured or obtained in Hong Kong but in India and that therefore they are not liable to Hong Kong for the cost of any materials but only for services, i.e. stripping,

£25, 650 being £3 a ton for 9 550 Foris

assembling, sorting, marking and delivering.

If you have any recollections of the matter at issue

which could be of assistance to us in elucidating the true facts

of the situation, we would be most grateful if you would put them

stow-disposal for any help you can give.

Yours sincerely,

(Lyd) H.P. Hall.

(H.P. Hall).

in

respect of

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