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requisition to deny them to the enemy and that under the terms of requisitioning adopted by the Ministry the owner looks to the Department or to his War Risks Insurance cover, if provision is made for Insurance in the Charter Party, for full compensation in the event of loss through warlike action. It is of course a nice question how far you can distinguish between different kinds of use. It would be interesting to know whether the Ministry of Transport have made payment for vessels requisitioned for use as block- ships.
It was with these difficulties in mind, I imagine, that you chose merely to repeat the original formula about acceptance of liability by the Service Departments. As I understand the formula, it was a way of hedging until the factual position became clear. But the question will have to be decided partly in the light of developments which have taken place since you
wrote your letter, such as telegram 1121 from Hong Kong which (14)
goes back from the compromise basis of Allen's report to the old claim that H. M. G. should pay for it all, and the statement
made on 16th November, Hansard column 2,009, by the Secretary (14)
of State for Air.
Meanwhile I would like to suggest the following amendments to paragraphs 5 and 6 of your draft despatch.
n6. I am aware that there is a strong feeling in certain quarters in Hong Kong that the moral liability rests with H. M. G. even though the legal liability may rest with the Hong Kong Government. I feel however that there are other factors to be taken into consideration besides those to which weight has been given locally. I regard it as important to distinguish between moral liability for the
/fact
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