CO129-591-7 Estimates for 1946-1947 12-12-1945 - 14-3-1947 — Page 31

30

required. I personally should have thought that, from

the psychological point of view it would be better to

defer an approach until we can see the picture more

fully, though I do not think that any great harm

would be done by attempting to get the Treasury to

agree such free grants in "principle" provided that the

principle envoked is not that of a political gesture,

but that of a hard headed recognition of Hong Kong's

"incapacity to pay".

17.12.46.

If it is accepted that we should only go to the Treasury for grants in casof "incapacity to pay", then the obvious course, in my view, is to wait until the occasion arises. I should have thought that it was generally accepted that H. M. G. would come to the assistance of any Colonial territory in financial difficulties, whatever the circumstances which led to those difficulties, and that there would be no point in going to the Treasury for their agreement to free grants in "principle" in cases of "incapacity to pay".

The object of the proposal in the last paragraph but one of my minute of the 12th December was to get Treasury agreement in principle to free grants for these Far Eastern territories to assist them in meeting rehabilitation costs, including compensation for war damage. I attempted in my minute to set out the grounds which I thought might be used to support this proposal. If, however, we are going to stick to the decision referred to in the first paragraph of Mr. Paskin's minute and make no attempt to get special consideration for these unfortunate Far Eastern territories, and I personally think that we certainly ought to do so, then I think we can only deal with the Hong Kong representations as proposed in the third paragraph of my minute of the 12th December.

20.12.46.

4. Came

of Ampest lasta Lon

See minutes

on 55358.

If you still feel hat we oud wit be likel

Save in any way by zaining hase inseres

"points of principle"

Go

in the mis

do

احمر

for afere

to

G

تا

/week we

of 7 Myles münt (12 Dec? 이

J./2(och 21.1246