to
4
no lease in fact exists and therefore it cannot be assigned. Nor can the conditions of sale be assigned, since they were specially designed meet the Company's requirements. He therefore proposes, subject to the Secretary of State's concurrence, to terminate the contract, subject to the conditions in paragraph 8 of (3). These involve the approval of a supplementary provision of over H.K. Sim. to refund 75% of the premium paid by the Company, less the rent of the plot for the first half of 1950.
4. Meanwhile, the Company had withdrawn its Hong Kong Manager, and the Governor therefore asks us to conduct the remaining negotiations with the Company on his behalf.
. I see no reason why approval should not be given to the Governor's proposals since Mr. Rushford has agreed with the legal advice offered to him by the A.G. I am not clear whether we, or the Crown Agents should continue negotiations on the Governor's behalf, but have drafted on the assumption that we should, since the case involves two points requiring the Secretary of State's approval and since the Governor has asked that this should be done.
A
B
6. I attach three drafts.
opening negotiations with the Company.
(The
approving the termination of the agreement and, in principle, the supplementary provision. negotiations may result in an elegetion of the amount to be refunded).
C
dealing with the subsidiary point raised in (4).
I should be grateful if Mr. Palmer and D.G.C.A. could deal with the financial aspects of the drafts and Mr. Rushford with the legal. In particular I am not sure how much of (3) should be put into the letter to the Company.
J.J. Anderom..
31st
March, 1951.
These pps have unfortunately been delayed
pinned to cover
see minutes
ЈНА.
I have amanded off A.
Andre
1/s