CO129-606-5 Hong Kong Loan- Financial settlement 2-3-1948 - 4-10-1948 — Page 128

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SECRET

OUT

WARNING: This is an unparaphrased version of a secret cypher or confidential code message, and the text must first be paraphrased* if it is essential to communicate it to

persons outside British or Allied Government Services.

(*NOTE: Messages shown as having been sent in a One-Time Pad : "O.T.P." are excepted from this rule.)

4

TO:

Commodore Superintendent,

HONG KONG,

info: C.in C. B.P.F.

Admiralty

FROM:

DEFERRED

SECRET EX

191801A/May

Date: 19.5.48.

You should see Governor Hong Kong's telegram

(51) No.437 of 1st May and Colonial Office reply No.533 (62)

of 10th May concerning problem of compensation for requisitioned ships and Governor will doubtless supply you with copies on request. Admiralty were consulted about and agreed to the terms of the latter telegram including the proposal that claims for ships requisitioned should be expeditiously examined by local representatives of the U.K. Departments concerned in consultation with the Hong Kong Government and that these Officers should ascertain the facts and report back as soon as possible.

2.

There is very little information in Admiralty records about requisitioning of vessels by naval authorities at Hong Kong and the only known claim against Admiralty is that for TAI SHAŃ referred to in your 612/H.K.No.374/38 of 13th December 1947. Admiralty's provisional view conveyed to Colonial Office without detailed knowledgo of the claims and of the circumstances is:-

(1) Under the Hong Kong Detence Plan requisitions

of ships were to be carried out by the Commodore as P.S.T.0.

(11) The Commodore was thus merely the instrument

for carrying out a joint Plan and requisitioning certainly did not automatically carry with it naval responsibility for compensation.

(iii) The Admiralty would consider that there was a

prima facie case for compensation only for ships taken up for specifically naval purposes, e.g. accommodation of naval personnel, boom defence vessels etc.

(iv) The scope and measure of compensation would

be for Ministry of Transport to determine according to what were deemed to be the terms of the roquisition.

/ (v).....