3. There is however a similar Hong Kong

Government claim, which is not referred

to in Boughey's letter, for stores supplied

to the Government of Burma. I enclose

a copy of the relevant statement which we

received from Hong Kong. The amount involved

(£6,575) is not large, but nevertheless

it is very desirable that whatever may be

the ultimate decision as regards the

cost of stores in process of manufacture,

there should be no unnecessary delay in

settlement for stores which were actually

shipped from Hong Kong. The Hong Kong

Government submitted this claim to the

Government of Burma who in reply stated that

the matter was being referred to "the paying

authority", but apparently no payment has in

fact been received. I do not know whether

in accordance with any financial settlement

between H. M. G. and the Goverment of Burma,

responsibility for meeting this claim should

now rest upon H. M.G.

;"B"

4. I need hardly stress how essential it

is that claims in this category (category "A)

should be met, especially if it is ultimately decided that claims falling under categories B

and C cannot be met. As you are aware the firms

feel very strongly on the question of all these

claims and our position is by no means an

easy one. We are thus very anxious that

there should be no avoidable delay in

settlement

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