CO129-606-5 Hong Kong Loan- Financial settlement 2-3-1948 - 4-10-1948 — Page 141

Services Departments may accept liability, the liability must

rest on the Hong Kong Government. Hevertheless H.N.G. agrees

that it is but reasonable that in the light of the general

policy pursued by the Service Departments, claims should be

examined to see to what extent (if any) the liability can

be accepted by the Service Department in the light of the

circumstances (s) under which the property was requisitioned

and (b) under which it was destroyed. In order to assist in the examination of the claims from the above point of view I

suggest that a report on the problem should be dram up

locally in consultation between the D.D. War Office Claims,

the local representatives of the Ministry of Transport and

of the admiralty, and representatives of the Hong Kong

Government, who should examine those claims where you are

satisfied that a le al liability existe owing to destruction

by Service "epartments whilst under ruiaison and where

you consider such liability should accordingly rest on

the Service Depart ents. 10 esses referred to in

paragraph 3 of your telegram if on further examination

it is established that legal liability exists in those cases

should for example be considered from this point of view.

3. I suggest that any statement which you feel obliged to

make to the Legislative Council on this matter should be in

accordance with the position as set out in this telegram.

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