Sec- File No. 37/2321/47 S.
SAVINGRAM
To the Secretary of State for the Colonies.
From the Governor, Hong Kong.
13
Date
No.....
38
April 1950
2412-16
20
17
SECRET
Your Secret Savingram No. 52 Financial
Conference: Denials.
Your paragraph 4: On basis of your paragraph the answer is yes, but there is considerable doubt whether this assumption will stand test of legal proceedings.
2.
(1)
Answers to detailed questions are as follows:
A(1) No further vessels salvaged or likely to have scrap value;
(11) No rehabilitation claims as such have been
submitted: only claim by Yaumati Ferry does not formulate basis of claim;
(iii)
(iv)
Legal position needs to be resolved in consultation with you, likely line is that compensation for total loss is payable even if vessel raised by Japanese if vessel not recovered by owner. Claims in respect of recovered vessels depend on resolution of doubt whether Government has right to claim to treat as Constructive total loss and so frustrate rehabilitation claim by requiring giving up of vessel to Government; or whether Company can claim renunciation of that right and their entitlement to rehabilitation claim which might be whittled down to 50% of 1941 value. Follows will bring copy of latest advice.
I regret no further information available.
1 MAY 1950
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