CO129-590-21 Government funds- temporary provisions 23-12-1941 - 4-12-1942 — Page 98

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In the former case, clearly we must accept liability, but in the latter case it seems wrong that one class of Hongkong property owner should receive such beneficial treatment at the hands of the United Kingdom taxpayer.

While we appreciate that in law it is difficult to draw a distinction between the two categories of ships, we do feel that we ought not to have to deal withthem and that their owners should be compensated out of whatever funds may be made avail- able by the Treasury for dealing with liabilities of the Governor. We have particularly in mind local ships scuttled to avoid capture.

Our next point arises on 2(2) which as you point out is an entirely new provision. We observe that you have only provided for the exercise by us of the Governor's functions in respect of Part 11 of the Merchant Shipping (Safety and Load Line Conventions) Act, 1932.

My reference to these functions in my previous letter was in no way intended to be exhaustive. Not only are there functions exercisable by the Governor under Park 1 of the same Act, but the sub- paragraph so drafted does not enable us to exercise the functions of the Governor under the principal Act of 1894, e.g. in connection with registration. We venture to suggest, therefore, that instead of sub-paragraph (2) in its present form, there should be substituted the following sub-paragraph, namely, "The provisions of the Merchant Shipping Acts, 1894 to 1940, in their application

to the Colony or any Order in Council made thereunder shall apply to the Colony subject to the modification that the functions exercisable thereunder by the Governor or persons authorised by him or by any person in the Colony shall be regarded as having been transferred to and shall be exercisable by the Minister of War Transport or persons authorised by him". The reason for inserting the words "or by any person in the Colony" is that there are certain functions under the principal Act which are exercisable not by the Governor but hy specified officials, e.g. the Collector of Customs.