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(f) The Colonial Office suggested that a list of points for discussion should be sent to Hong Kong and that Hong Kong should be asked to inform us of any further points which they wish to raise. The Treasury agreed, subject to careful drafting, in order not to create the impression that we considered that Hong Kong had certain valid claims against us or to raise old matters already settled. The Colonial Office agreed that there were certain matters which it should be left to Hong Kong to raise.
It was decided that the following action was necessary on the various individual issues likely to arise:-
(a) Denials claims. The Colonial Office should issue their draft dispatch as soon as possible after clearance with the air Ministry. This passage places liability for expenditure of £1m or more (if claimants pressed their claims) with the Hong Kong Government and repudiates Service Departments liability while leaving it open in certain circumstances for Hong Kong to ask for some assistance in the light of the actual liability incurred.
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(b) The Colonial Office should also study the Allen report as soon as possible to see whether any factual points arise.
(c) The Admiralty should reply as soon as possible to the Colonial Office about the claim for flour requisitioned on their behalf in order to state their view on the claim with special reference to the possibility of local liability.
(d) The Treasury said that H.M.G. were pursuing with the Government of India the question whether the financial settlement with India left it to them to pay Hong Kong for certain War Supplies board claims, but they thought it might be possible to agree that H. M. G. should underwrite this claim with all due reservations about liability. If payments were made it would be to Hong Kong individual merchants not to the local Government.
(e) In the absence of any departments who might appropriately investigate the small supplies board claim by Hong Kong against Burma, the Treasury agreed to investigate the matter in the first place in case Hong Kong wished to raise it, but said that it would have to be borne in mind that Burma owed us a great deal more than it owed Hong Kong quite apart from the merits of the case.
(f) The War Office said that they admitted in principle a claim by Hong Kong for railway wagons and intended to offer an interim payment during this financial year although the total amount was in dispute. The claim was for £54,000.
(g) Red Cross Funds. The Colonial Office should approach the Treasury as soon as possible on the question of the Governor's contention that any recoveries of Red Cross Funds should go to Hong Kong and not to H.M.G.
(h) War Criminals. It was for Hong Kong to comment on H.M.G's view that the cost of maintenance and repatriation of war criminals detained in Colonial prisons should rest with Colonial Governments. Some easement was forthcoming since General MacArthur has agreed that these criminals should serve the rest of their sentence in Japan.
(i) Kowloon Properties. War Office are settling direct with the property owners' concerned.
(j) Argyll Road explosion. The Colonial Office should look up the papers in case Hong Kong wish to revive this claim.
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