CO129-606-5 Hong Kong Loan- Financial settlement 2-3-1948 - 4-10-1948 — Page 146

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civil Government ceasing to function is even more clearly

established subject to any comments you may have in the

light of circumstances in Hong Kong in which

denial measures

On

Herefore Apart 1 frame

were carried out and the local Defence Regulations.

re-reading my telegrams Nos. 498 and 499 I do not see how

you have received the impression that legal liability

would only arise where requisition of the property was (first) effected, although such requisition might well

according to the powers and conditions governing the

requisitio ing give rise to a clearer legal liability.

2. The question is one of great complexity and in

view of the size of the problem over the whole of the

Colonial Empire H.M.G. would be quite unable in its

the

6

below where the Services Depli way access! Sarlity, the Sablity must rest on the Hong Kong You!

present circumstances to accept liability to meet all denial

ん

Nevertheless H.M.G. agrees that it

claims from U.K. funds.

is but reasonable that claims should be examined to see to

what extent (if any) the liability aan be accepted by the

G Service Departments in the light of the circumstances/under the

which

in the light of the general

whey

property was requisitioned and blunder warch to pursued by Service Departes de

In order to assist in the examination of the

claims from the above point of view I suggest that a report

Tocally in consultation between

the

Leroux

Deplo

on the problem should be drawn up local Committe consisting

the D.D. War Office Claims, the local representatives of the

and representatives of the Hong Kong Govt. Ministry of Transport and of the Admiralty, and that the

who

Committee should examine those claims where you are satisfied

Coung-15

cosmiction whrest

der

that a legal liability exists) and there you consider such

accending

liability should rest with the Service Departments,

n

requestion

for

by Burnce

Dips

example the cases 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 conendured

•

from

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

to the Legislative Council on this matter should be in accordance with position as set out in this telegram.

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