INWARD TELEGRAM
This document must be paraphrased if the communication of its contents to any person outside Government Service is authorised.
20
15
19
TO THE SECRETARY OF STATE FOR THE COLONIES
Typex
PRIORITY
No.706.
FROM HONG KONG (O.A.G.)
D. 22nd June, 1950. R. 22nd
Secret,
18
11.40 hrs.
18 Your secret savingram No.83.
Financial Settlement.
Your telegram No.943 has removed doubt raised by paragraph 1(e) of savingram under reference whe ther you agreed Allens-category "A" claims should be dealt with in accordance with paragraph 1(c) of your savingram No.3, so that apart from one case in which there was a charter party, the terms of compensation will be those set out in the compensation (Defence) Regulation 1940. Regulation 6.
2. In dealing with claims made under the compensation (Defence) Regulation 1940, the following difficulties will arise
(a) "Requisition" is defined as including "take possession, etc." (Regulation 2(1)).
(b) Specific provision is made for the payment of compensation for total loss (not excluding loss from war operations in the case of vessels). ( (Regulation 6(1)(á)5).
(c) The Tribunals for determining disputes are empowered to decide whether any compensation is payable under the Regulation as well as to fix the amount (Regulation 9).
3. Failing action by Government to settle claims or establish Tribunals, Solicitors representing the majority of shipping claimants have indicated from intention to compel appointment of Tribunals by acting for Mandamus against Governor under Section 517 of the Code of Civil Procedure, local equivalent of Rule 53 of Rules of Supreme Court in England.
4. I now propose to commence negotiations with claimants whose ships it is agreed were requisitioned, which were lost either by enemy or denial action before the occupation of the Colony and which have not been recovered, with a view to payment of compensation at 1941 values plus accrued interest. This action should defer pressure for establishment of Tribunals and may result in settlement without reference to them of bulk of important outstanding claims.
15.