CO129-606-6 Hong Kong Loan- Financial settlement 7-3-1949 - 23-12-1949 — Page 31

OUTWARD TELEGRAM

This document must be paraphrased if the communication of its contents to any person outside Government Service is authorised.

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15

0/49]

94003/10/49

Typex

TO HONG KONG ( Sir A. Grantham)

Sent 27th October, 1949 14.45 hrs.

IMMEDIATE

No. 1502 Secret

of reinforcement.

Your telegram No. 1121.

Hong Kong's contribution towards cost

Much regret that it was quite impossible in short time available, and in view of number of different Departments of H. M. G. concerned, to brief Rees-Williams fully on the various claims involved, nor can any hope at all be held out of his being able to give Unofficial Members, during the course of his visit, any such assurance as is contemplated in your paragraph E.

2.

You have received my despatch of 21st April setting out the whole problem as it is seen here in regard to War Supplies Board Claims and also my savingram No. 582 to which I am awaiting your reply. In the case of "denial" claims, I am hoping to address you by despatch

shortly indicating H. M. G.'s views.

る。

I will await receipt of your despatch

promised in your paragraph 4 but I must emphasise that in my view the question of Hong Kong contributing towards cost c reinforcements is a separate question, and should be considered in the light of Hong Kong's ability to make such a contribution bearing in mind also the factors in paragraph 2 of my telegram No. 1392. As regards the claims tỏ which yoz refer, until final decisions are taken it is not possible to estimate what effect if any, they will have on Hong Kong's general financial position.

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I hope therefore that in spite of what is said in paragraph 4 of your telegram, it will be possible to give early consideration to the question of a contribution by Hong Kong to the cost of reinforcements without waiting for final decisions on claims outstanding from the last war, on the understanding that when final decisions have been reached regarding the claims, should they markedly affect Hong Kong's financial position, that factor would have to be taken into account with all other relevant factors in annual review of the rate of contribution suggested in paragraph 6 of my telegram No. 1392.

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