Sil60/49
IF 09
The Church House,
Great with Street,
3.2.1.
23 December, 1949
23
29
Dear Hudspith,
Correspondence on the various thorny questions connected with atores ordered through the Hong Kong sar Supplies Bord by the zast rn Group Sup ly Council reats with your letter of the 18th June to wallace.
I now enclose copies of the despatch which we amt to Hong Kong last April, conveying the view expressed in discussion here, and of the Gov rnor reply. Y u will sas that the Governor does not attempt to challenge our view that there should be no payment at all of claims in categories B and C, but that he is anxious that outstanding category à claims sh.uld be settled before the next budget debate in the Hong Kong Legislative Council (This will probably be in Breh next). Apart from a small balance of $258, these are all clains which we had advised him to pursue with the Goverments of India and Burza} it is beesuse he has been unable to make any pro:ream in this way that he now suggests that is kajesty's Governant should meet the claims initially and take over their prosecution with India and Bursa, There sees to us to be some justification for this, since discussion sa to the
liability
1.C. HUD ITH,
TRAVURY