54126/6/60
PRIORITY
SAVING
GREGOLA JE VADINAJESTYST I
From the Secretary of State for the Colonies.
To the Officer Administering the Government of KONG CON
DATE 6th April, 1950.
NO.
52 Saving.
SLOMET
27
My telegram No. 409.
Item 1 (a) (i) "Denials",
In my despatch No. 15 I expressed the view that legal liability exists against Government only where it can be established under Hong Kong Defence (Compensation) Regulations, and even then practical difficulty may arise in proving such claims; and there would be no justification for any ex-gratia compensation where legal liability cannot be proved.
Z
In Allen's report referred to in your despatch No. 31 of 12th August, 1948, requisitioned vessels are shown in Section A of Schedule 1 and the net legal liability 1.9. after allowing for vessels subsequently recovered is estimated at about $13 millions to which must be added interest to 31st March, 1950, say 4
$41 millions. It seems therefore that Government liability should not exceed $13 millions. It appears from paragraph 3 (a) of Allen's report that legal liability of Hong Kong Government in these cases is not (repeat not) open to doubt subject of course to proof of smount actually payable on each claim.
3.
In your telegram No. 497 of 20th May, 1948 item (i) gives $25 millions in respect of "requisitioned material"; and la your telegram No. 1121 of 21st October, 1949, and Savingram No. 10 of 28th January, 1950 you state that denial claims amount to some $25 millione,
AR On assumption that you accept views expressed in my dospatch No. 15, May 16 be taken at the forthcoming conference that 1ability against Goverment in respect of denial claims is not (expect not) 11kely to exceed $18 millione and may in fact prove to be less owing to difficulties of proof of claims and subsequent recoveries of reasols Even the figure of 816 millions may have to be reduced in the light of the ausrors to the following questions:
Have versele listed No. 2, 5 and 6 in Schedule 1 Section A (1) stated to have been salvaged by Japanese, been founā; have any other vessels under A (1) been salvaged. Hava Qay rehabilitation claime been received in respect of ferries listed under A (11) and has the legal position regarding claims in respect of ferries peek ascertained, Is any further information available on the mattera Peferred to in Allen's remarks at end of Sections A
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