their normal military functions, and not in

42

pursuance of their administrative responsibilities in the absence of the civil Government, and that

on these grounds also the claims cannot fall within the scope of a telegram delaing with the financial aspects of the hand-over from military to civil Government.

2.

Mr. Oreech Jones has given consideration to the suggestion in paragraph 6 of your letter, but regrets that he cannot accept the view that the assumption of certain responsibilities by the Hong Kong Government in 1948 lays on that Government any obligation, moral or otherwise, to accept retrospective responsibility for meeting the claims

under reference,

3.

Er. Creech Jones accordingly regrets that he cannot reconsider his decision that he should not approach the Governor of Hong Kong in the sense desired by the Army Council.

4.

Copies of this further correspondence are being sent to the Governor for his information.

I am,

sir,

Your obedient servant,

W. I. J. WALLACE

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