CO129-606-5 Hong Kong Loan- Financial settlement 2-3-1948 - 4-10-1948 — Page 30

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of loss through warlike action. We do not consider, therefore, that in the e circumstances, claimants could be told to seek recovery from a third party, particularly as that party may be under no legal liability to compen- sate them fully. There is the further point that, if we did so, we should be making a distinction,when none should exist,between scuttling at sea and within the confines of a port.

I am sending a copy of this letter to the Treasury, Colonial office, Admiralty arid war office.

Yours sincerely,

W. A. MITCHELL

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