CO129-523-1 Reclamation work at North Point- a general plan of port of Hong Kong showing extent... 27-12-1929 - 12-6-1930 — Page 6

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Sir

Government a statement of his position and proposals

for a settlement without prejudice to the legal

claims which he is advised that he possesses.

Joseph Kemp, the late Attorney General and now Chief

Justice of Hong Kong, puts forward in this despatch a memorandum in which he rejects any strict legal claims on Mr. Kwik's part, except possibly on one

point, namely, compensation for the delay caused

to Mr. Kwik by the alteration of the design of the

sea wall at the Government's request. A certain

liability has, he says, been admitted in the course

of the negotiations by the Hong Kong Government for

the delay to the extent of 8 months, although no

estimate has been made of what compensation could be claimed in that respect. Sir Joseph Kemp has

advised that Mr. Kwik's proposals for a settlement

cannot be entertained, but as a matter of fairness and in view of the fact that he says Hong Kong is already committed to the payment of something approaching $150,000 (which does not include com- pensation for delay) he advises that the Government should offer to remit $300,000 out of the loan ($600,000) which has been advanced to Kr. Kwik:

the offer to be made without prejudice and with a complete denial of any legal liability, and to be

accepted in full settlement of all possible claims.

The Governor, with the consent of the Executive

Council, is prepared to proceed on these lines, and

it is understood that Mr. Kwik will accept the offer. A complete new agreement is involved, and the settle-

ment of this question "which contains the germs of

long-drawn and expensive litigation" will enable the

Government to proceed at once to the consideration of

very important proposals for developments eastward

presumably. Compensation in respect of planso construction of rabble

wall.

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