ASSE.
COPY.
31
Enclosure 10.
To: Accountant-General.
From: Solicitor-General.
Your reference c/5/67/45/47.
I think your best course is to ask that S. of S. take up the matter with the Admiralty.
The Admiralty will no doubt contend that they should only be called upon to pay for what they have consumed. To rebut this I think our best argument is as follows:-
the
When the Government requisitions on behalf of Services it is acting as their agent and they accordingly become liable to indemnify Government against the liability incurred by the fact of requisition. This liability to indemnify must on normal legal principles arise at the time that the requisition is made provided that the requisition is made at the request of the Services. Government acting as such agent must of course take the necessary steps to put the property requisitioned at the disposal of the Service requesting requisition and if it fails to do so through its own default, no Service liability can arise. In the present case it is at least arguable that there was no default upon Government's part and that therefore the Navy should indemnify Government to the extent of 7,255 sacks. So far as the 4,400 sacks are concerned, the handing of Godown Warrant No. 3032 to the Naval representative made the Navy as between the Navy and the Godown keeper clearly entitled to take possession of the goods at any time they wished. They did in fact their rights as to a number of these sacks and the fact that they were prevented by the fortunes of War from taking possession of the remainder cannot relieve them of their responsibility to keep the Hong Kong Government indemnified.
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If the above reasoning is not correct and the true view is that Service liability is to be limited to property actually used or consumed then it is of prime importance that we should know this at the earliest opportunity as we could then refuse to requisition unless the Service is either willing to take immediate delivery or accept immediate responsibility.
sgd. George Strickland.
Solicitor General.
1.9.49.