CO129-606-5 Hong Kong Loan- Financial settlement 2-3-1948 - 4-10-1948 — Page 204

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Oode

OUTWARD. TELEGRAM

FROM THE SECRETARY OF STATE FOR THE COLONIES

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203

TO HONG KONG(Sir A.Grantham)

Sent 10th March, 1948. 10.30 hrs.

No.331

Coufidential

Ancid. (4)

Your despatch No.292 of 1947.

Financial Assistance by H.M.G.

1.

I regret that I am not yet in a position to inform you of the outcome of the consideration which is being given to the proposals in your despatch. The matter has to be submitted to Ministere who will consider the request for assistance in the light of this country's financial position and the financial position of Hong Kong. Consideretion is being given at the same time to the request for assistance Prom the Kalayan Governments in respect of a proposed scheme for war damage compensation, bearing in mind the Secretary of State's statement in the House of Commons on 18th February, 1946. If the recommendation in paragraph 10 of your despatch that no compensation shall be paid to individual claimante 1A accepted, the question of assistance from H.M.0. under this head will not arise.

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2.

It is probable that Ministers will wish at the Bame time to arrive at a final settlement of other outstanding liabilities arising out of the war such as the cost of the Military Administration and of War Office relief stores. hope it will be possible to complete consideration of both matters in the near future, and I will inform you of the outcome as soon as possible.

Copies sent to:-

Treasury

Board of Trade

Mr. D.R.Serpell, 0.B.2. Mr. E.E.S. Marker, C.B.

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