45
ea
So far as categories (a) and (b) are comerned, we are agreed generally that the liability for compensation, at least in the absence of special circumstances, rests with the local dove raments and vill fall to be alt with under any local ex-gratia echeae unless the claiment in any particular case
ia osa aubat» tiate a legal right to compensation *his is all right eo for as the "tainyon and Soruce Goverments are concerned and we have made our positim in this respect quite lear to them. In Hong Kong and the estern Pacifio however no local golpensation Boheves are being introduced and the question of how the claims arising in their Territories are to be met is still under discussion, but this does not, of course, affeet the gelsral principles involved.
ão regarda cotegories (0) and (d) above we have ¦ not yet reached my clear understanding with the inlays and
Borneo Governments on the question of liability. The matter was not reised in our despatch of the 30th way lest to which you referred in your letter to Ganaford of the 2nd 180eber, since we were expecting the Federation attomey General to etate his views on the legal position. In our original dreft of the despatch the following phrase was included at the beginning of paragraph 5, with the concurrence of the Arcosury i "where legal liability could be proved it would rest on the local Governmente, except in so far as the Service Departments might be able to accept liability in certain particular cases in the light of the existing practice of the respective Depertwents and the facts of sach gase”. At the inter-Departmental meeting where the draft vas diacusadâ, the ar ffice nad admirsity representatives objected to this phrase, not because they disagreed with the principle involved, but because they considered that it was no longer appropriate and would convey the impression that there were still outstanding clsins which they might accept, whereas they contended that they had already settled all claims for which they accepteŭ liebility. Although, in deference to the wishes of the var ffice and Admiralty,
the phase was deleted from the despatch we still regard it as being a correct stetenent of the principle which has been generally accepted. It may still be that the Air Hialatry
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