INWARD TELEGRAM.
TO THE SECRETARY OF STATE FOR THE COLONIES.
298
Typex
IMMEDIATE
COPY FOR REGISTRATION
FROM HONG KONG (Sir A. Grantham)
D. 4th May 1951. R. 4th #t
#
12.45 hrs,
MAY
1951
DEFRIGE & GENER
MAY 1951 PEAS R
No. 516
Confidential.
Your telegram No. 536.
Netherlands Harbour Works.
On reconsideration I think that a simpler means of meeting the Company's demand would be to offer to include in the contract a clause agreeing to purchase the Company's plant at present valuation less subsequent depreciation, according as there is total or partial loss or damage of plant, such agreement to he operative only for the duration of the contract in the event that such loss or damage occurs by reason of war or other serious emergency affecting Hong Kong.
12. I am satisfied that this arrangement can be confined to this particular firm with the single exception that if it is necessary to invite firms from the U.K. to come here to carry out a large project such as the Tai Lam Chung Scheme, it might be necessary to consider a similar arrangement. I understand that in Malaya and elsewhere some such provision is being found necessary to induce U.K. firms to bring out equipment.
30 Requisition would amount to acquisition and at worst full compensation would be payable, but as there is some uncertainty regarding the compensation provisione which will govern requisitions in a future emergency,
the method proposed in my paragraph 1 is now thought preferable.
4. The Company's local manager has now been instructed by his principals to remove the plant from the Colony if decision is not reached by noon on May 8th. I should therefore be grateful for the earliest consideration and for approval for closing agreement on terms now proposed.
Copies sent to:-
Ministry of Civil Aviation
1
Air Ministry
Treasury
K
Board of Trade (Insurance
Company's Department)
Crown Agents
Crown Agents for the Colònies.
Ap
Mr. W. C. Gawthorne Registry Tels.
Mr. L. T. G. Sully Mr. D. F. Hubback
Mr. J. Wright
Mr. Foxlee
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