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the (1 million did not include any ascistance in respect f the claim now under consideration (sse biɛ telegrame os. 406 and 4:26 or 22nd and 27th April, 1948). At tae tice, our attitude emused considerable consternation locally. Ən looking at the problem again think we can:ot altogether exlude from consideration the fact that we have recently agreed to double the grant to the salayan (overnmenta ia respect of th ir war dana re
de compensation scheme. faking all the factors into account in the case of the Hong Kong claims, it seem to us that there might ultimately be a case for asking Hie majesty's Government to make a further srant of up to, say, 65% of whatever is eventually found to be the amount actually onent, subject to a maximum of perhaps £1 million. (The figure of £1,000,000 1# taken ae it is approximately 655 or £ly alllions referred to above, and ip - on the Malayan precedent equivalent to an additional amount equivalent to the amount of the grant initially offered). If such an additional grant were made to the Hong Kong Covernment, it would of course have to be on the clear understanding that the responsibility of deciding what clei ́s miat be met, and what rejected, on purely legal grounde, would reet on the Bong Long Government and that there would be no case for asking the Service Departɑsente to accept liability.
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we are not, however, yet in a position to consider approaching the Treasury formally on those lines, as the actual amout of the liability ie not yet known. In the meantime I suggest we reply to Hong Kong se in the enclosed draft despatch, which is 1# of course very guarded on the subject of possible further help from His knjeety's Government:
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