OUTWARD TELEGI
Alt, on
54126/6/48
Cypher (0.7.P.)
TO HONG KONG (Sir A.Grantham)
FROM S. of S.. COLONIES.
Sent 16th April, 1948.
18.00 hrs.
IMEDIATE
No.456 Becret
166
Addressed Governor, Hong Kong.
Repeated Secretary-General, Singapore, No.299.
High Commissioner, Federation of
$1
#
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Malaya, No.492.
Governor, Singapore, No.456 (Secretary
General please pass). Governor, North Borneo,
North Borneo, No.160. Governor, Saravok,
No.119.
The
1. Consideration of proposals in your despatch No.292 has now been completed. H.M.C.accept for the reasons given in your despatch No.281, your recommendation, following the report of the War Damage Commission, that no compensation should be paid for war damago in Hong Kong. question of H.M.0. providing any assistance towards a war compensation scheme for Hong Kong under the declaration of October, 1942 (see paragraph 2 of my telegram to Secretary- General, Singapore No.301 repeated to you as No.457) does not therefore arise,
2: H. M. G. ere however anxious to give practical assistance to Hong Kong as evidence of good-vill and of their belief in the Colony's future. The extent of such aspiotrace must of course be determined on the one hand by H.N.G's ability to help in the light of conditions in the United Kingdom following the crippling war losses suffered by United Kingdom Government and the extremely heavy burden of taxation falling upon United Kingdom taxpayer, and on the other by the rapid recovery and present prosperity of Hong Kong. H.M.G. are accordingly propared to agree to a financial settlement as. set out in paragraph 3. bolow which Would in their view be a reasonable and indeed a generous one.
34
The settlement would be as follows:-
(a) In the first place H.M.G. will not seek any contribution from Hong Kong towards the cost of the militery administration:
(b) B.M.G.will treat as free grants the advences made prior to and after the establishment of civil government in Hong Kong, amounting to £3,250,000 in all, except insofar as that eum has been used for the purchase of stores for re-sale which has resulted in cash receipts by the Hong Kong Government.
(c)
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