CO129-589-20 Evacuation- financial arrangements 26-7-1941 - 3-1-1944 — Page 123

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With the fall of Hong Kong, the position becomes more complicated, since many of those already evacuated who have been previously supported by remittances become depend- ent on maintenance allowances. You suggest that, from the end of January all such allowances should be the responsi- bility of the U.K. Government, and should not fall on Hong Kong funds. I take it that what makes the end of January appropriate as the date from which this increased charge to U.K. funds should date is the fact that, previous remittances were continued, by a special arrangement, up to that date.

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A decision on this point is not a matter of such. . immediate urgency as is the meeting of the claims submitted in respect of the period up to the end of November. should like to consider it, however, with reference (a) We terms of the arrangement with Hong Kong by which we are at present meeting expenditure of about £1,300 a month on main- tenance grants under the Hong Kong compulsory evacuation scheme. Do you suggest that those who now "fall into the category of maintenance allowances" are (i) a liability which

à clearly falls on U.K. funds under that arrangement, or (ii) a further liability which we should now undertake. If the latter, there would be possible reactions on the question of liability for evacuees from other territories, and your proposal (b) would have to be considered in the context of the arrangements as regards all the categories of evacuees from whatever territory at present requiring maintenance in the Dominions on India. (c) Apart from, the question of allocations between the Colonial and U.K. funds, there is a further question of accounting, on which we have had letters from the Foreign Office and the Dominions Office, as to the Vote or votes on which expenditure of this kind, when accepted as a charge to UK. funds, should fall.

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I assume that this interim reply will enable you to arrange for the reimbursement which is due to Australia for the period up to the end of November. We shall endeavour to reach a decisive view to the other points as quickly as we can. Meanwhile we shall be glad to have any further comments you may have, especially on my question under (a) above, and any further information coming to you which has a bearing on the

atter.

Yours sincerely, ́

With Handie