XXXXXXXXXXX MAYFAIR 9494
WRI(c) 1189
4th April, 1950.
13
(3)
Dear Davidson,
I refer to my letter of the 1st March in reply to yours of the 11th February (NS 1391/4), about the Soviet vessels "SIMFEROPOL" and "SVIRSTROI", and to our subsequent telephone conversation from which I understand that, owing to diplomatic considerations, the Foreign Office desire that an offer of arbitration should be made to the Russians.
While the War Risks Insurance Office are prepared, for their part, to concur in the submission of the case to arbitration they could not agree, in advance, to abide by the decision of the arbitrator and must, as a matter of principle, reserve the right to have a case stated for determination by the English Courts. This, of course, would involve a duplication of legal costs, and it was primarily for this reason that Messrs. Constant & Constant's proposal, in their letter of 20th October, 1948, for a reference to arbitration was not accepted.
Sir Walter Hargreaves, who acts as H.M. Government's adviser on marine insurance matters, takes the view that it is for the Russians to prove that there was a restraint which prevented their obtaining the free recovery of their vessels, and as they are withholding the only documentary evidence to this effect, there is little to be gained by submitting the matter to arbitration. The arbitrator, in Sir Walter's view, would require this documentary evidence before he could make an award.
A. E. Davidson, Esq.,
Foreign Office
London, S.#.1.
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