The ar Office,

LONDON, S.W.1.

20 Larch, 1951

3

65.

37

1950

16/Abroad/2900(F.1)

Dear Fairclough,

634

1. With reference to your letter of 13th January, 1951, reference 54126/, about the cash accounts of the B.R.A. Hong Kong, I have looked into the matters of:-

(a)

the claim by Hong Kong that our figure of balance should be reduced by $72, and

·

(b)

the settlement with the Hong Kong and Whampoa Dock Co.

fu

A of min. 3/4.

X

2.

In both cases I am afraid that I must seek further information.

C

In the case of (a), the $72, I have found evidence which I think supports Hong Kong's contention, but confirmation depends upon (i) finding out to whom a certain payment by Hong Kong was made and (ii) transferring from that sum the equivalent of $72 to the War Office.

The sum required to be found is £65,582 1. 4. which is referred to by the Crown Agents in their correspondence with us under reference P/G.o. Hong Kong o dated. 3rd April, 1950, as follows:-

"Less amount overpaid to the War Office in amount of £65,582 1. 4. by telegram dated the 25.3.1949. This amount was not a B.M.A. advance but when recovered was credited to B.M.A. Advances Recovered in error. Vide Treasury Transfer No.737 of March 1947 - $72".

No trace can be found of the receipt of the sum of £65,582 1. ‘4. in the War Office and I am wondering if it was received by the Colonial Office a s part of the receipts from the sales of supplies, etc. Failing any information on this side, would you be good enough to ask Hong Kong to provide particulars to identify the payment.

3.

With regard to (b) the Hong Kong and Whampoa Dock Co., the amount shown under "Advances", Balances as at 30th April, 1946 was $2,764,970.00 (£174,060 13. 6.) which sum is required to clear War Office books. As you know, the Treasury agreed to settle with the Company for HK$2 million (£125,000) and to the write-off of the balance of $784,970.80 (49,060 13. 6).

The position regarding the payment of the $2 million, as we see it; is

as follows:-

Ĉ

Agreed settlement with Hong kong and Whampoa Dock Co.

Recovered locally and placed on deposit and (presumably) included in amounts paid to War Office from Deposit (see statement of position of Hong Kong B.M.A. Advance Accounts as at 31.3.49 enclosed with Savingram No.525 dated 6.7.49).

Paid by Crown Agents, April 1950, (part of $986, 829.16).

$ 2,000,000.00

525.00 1,999,475.00",

921,194.02

1,078, 280-98

Paid by Crown Agents, Dec. 1950, (£67,249 11. 7).

1,075,993.28

Balance outstanding

$

2,287.70

/The

A. J. Fairclough, Esq.,

Colonial Office,

The Church House,

Great Smith Street,

S.W.1.

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