CO129-606-5 Hong Kong Loan- Financial settlement 2-3-1948 - 4-10-1948 — Page 183

CO129 Colonial Office Hong Kong Records 理藩院香港檔案 All

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receiving a free grant. This criticism itself could be disposed of without much difficulty when it is pointed out that grant was conditional on major part of compensation being found from local resources, but if not, it is certain to court more powerful opposition over payment in suspense. You will, I am sure, realise that in spite of any effort of mine, gesture of His Majesty's Government will completely lose its value (corrupt passage repetition requested)

in the circumstances I have explained, urges that offer should be modified in some degree.

lio If it is felt that acceptance of actual liability of war cost is impossible, I must earnestly recommend for your approval an ex gratia grant of 21,000,000 which could be amnounced to the public as a token payment to Hong Kong Government in recognition of the part played by the Colony in the war effort. convinced that something on this line would go far to meet criticism by appealing to local pride and it could, no doubt, be justified by emphasis on grave difficulties which His Majesty's Govertment are now facing. It would.

I ain

in fact, clear suspense account over which there is so much feeling but His Majesty's Government would not repeat not be committed to acceptance of liability of volunteer pensions for future.

I should be glad to learn whether your reply rules out all hope of waiving claims in respect of small craft supplied during military period to replace pre-war harbour craft removed or rendered unserviceable by Japanese, see paragraph (contit group) of my despatch No. 292 and my despatch No. 19.

́statement.

(54337/48)

about 200,000

I shall telegraph urgently comments on draft

Copies sent to:

Treasury

*F

"mvolved

Board of Trade Foreign Office

Mr. Crombie,

Mr. D.R. Serpell, 0.B.E. Mr. Pitblado.

Mr. Marker.

Mr. Scarlett,

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