88

4.

As regarūs

-ree kioe" included in item

A (1) above, I would refer to my savingram lio. 182 of

9th August, 1948 enclosing a memorandum on this subject,

and to your reply No. 92 of 1st November 1948,

Since that

corre spanience took place, further consideration has been

given to this problem which for convenience is sumarised

below, with the addition of certain aspects which now

appear to be relevant. Shortly after the surrender of

Thailand, supplies of rice estimated to be worth £1,707,600

were obtained from that territory without payment and

were shipped to India, Halaya, Hong Kong, Borneo

territories, Indonesia and the Philippines.

The amount

shipped to Hong Kong was worth £516,700. It is assumed

that the rice was sold and presumably the proceeds of

sale in Hong Kọng are included in the total of items

C (a) and (b) of para. 3 above, subject to any further

information you may be able to give na a result of the

enquiry at the end of that paragraph,

un the argumɲɔtion

that the proceeds had been país over to B.A.G., it was

stated in my savingram of 9th August 1948, that the

prooeeds should be distributed, not on the basis of actual.

receipts, but in the same proportions as the I.E.F.C.

allocation of rice from S.E, asia sources to the countries

concerned. It would obviously not be fair that each

territory shoul: be credited with the value of the

Ciamɛse rice actually received by that territory, since the

distribution amongst the above territories was purely a

matter of convenience at the time and was not on the basis

of any entitlement of each territory to food supplies at

that time, or on the basis of entitlement to shores of

reparations from Thailand.

On the basis of 1,5,F.0.

allocations,

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