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94003/10/49
INWARD TELEGRAM
This document must be paraphrased if the communication of its contents to any person outside Government Service is authorised.
TO THE SECRETARY OF STATE FOR THE COLONIES
26
34
FROM HONG KONG (Sir A. Grantham)
D. 21st October, 1949. R. 21st
14.10 hrs.
ANE, FORMER PUDINGPAIN, VE ZNANJA VERY PENDİ
IMMEDIATE
No. 1121
Garrison.
Secret
Your telegram No. 1392.
(37) ~ 94003/10/49
Contribution towards cost of reinforcement of
This was raised tentatively at laat meeting of Finance Committee, and as was expected, attitude of Unofficial Members was that they were not prepared to consider contribution towards present emergency until slate had been wiped clean in respect of the la36 war.
2.
By far the largest item still outstanding is the denial claims, which amount to soine 825 million. It will be remembered that Government made it quite clear that they accepted the terms of the War Expenditure Settlement with H.M. Government early in 1948 on the understanding that these claims would be met by the Service Departments, but that owing to miscarriage of one of my telegrams a serious misunderstanding arose and the impression at the London end was that these
54/26/6/48claims were excluded. (My telegram No.426 of 1948 and my
(13)
savingram No. 40 of 1948 refer ). It was finally agreed that claims should be re-examined by the Service Departments concerned but nothing further has transpired. Dealal was effected at the instance of the Services and this Government merely acted as the agent of the latter in signing the requisitions.
3.
A similer situation has arisen in another connection, where the Admiralty have repudiated a large claim from local firm for flour requisitioned on their behalf in 1941. Again, this Government merely sigued the requisitio as agent for the Admiralty, and this is not disputed. It is argued, however, that owing to the surrender
the Navy was only able to consume a very small portion or the flour and that as they received no benefit from the remainder they should not pay for it. This is clear evidence,
that they became the legal owners of the whole stock. There is also the question of War Supply Board claims dealt with in your confidential despatch No. 87 of 21st April.
however
4.
before
Unofficial Members will urge very strongly that they consider any contribution towards the cost of the present emergency they should be given an assurance that Hong Kong will not be expected to meet these
outstanding claims and bet other comparatively small items of war expenditure? which foer nie reuson or another still remain unsettled.
1 BL
佣
Bhould rest viere they 114.
submitting the Hong Kong case by you in detail by despatch as scoa es possible.
15.