(Ongl in fil 54126/6/47)
Despatch
EXTRACT OF PARAGRAPH 12 OF CONFIDENTIAL LITTER FROM THE
GOVERNOR OF HONG KONG DATED 12th DECEMBER, 1947.
Secretariat File No. 37/2321/47.
No. 292.
2
17
12.
There is also the question of deposits held by the Treasury on the outbreak of hostilities which were confiscated by the Japanese. These included deposits of contractors, newspapers, etc., security deposits by Government employees, certain Supreme Court deposits and funds held by the Secretary for Chinese Affairs relating to certain Chinese charities. I have been advised that no claim lies against this Government in that it took all the precautions reasonably expected of a trustee but was forced to yield to superior force. It is therefore contended that any claim that holders of deposits may have lies against possible reparation
It is payments by Japan and not against this Government. very probable that a case will shortly be brought before the Courts as a test case, and should the view of the Government legal advisers not be upheld, a liability which is roughly estimated at $8,000,000 will be incurred.
£500,000
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