CO129-606-6 Hong Kong Loan- Financial settlement 7-3-1949 - 23-12-1949 — Page 49

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it could be shown that at the time

when the loss or damage occurred,

the risk to the vehicle or aircraft

arising in consequence of war

operations was materially increased

by reason of the requisition.

It is

not clear why vessels are not

but

mentioned in this proviso, and one can

it

only assume that this proviso does

not cover vessels and that therefore

(equal to the

compensation of value of the

vessels would be payable in any case of

a loss whilst under requisition

irrespective of the cause of the

los s. In the last sentence of

his

paragraph 3 (a) of Allen's report,

Allen

he says that the legal liability in

these cases has been admitted by

the Hong Kong Attorney-General and is

not open to doubt. I assume

paragraph 3 (b) of the report refers

to cases where there was no formal

requisitioning.

4. The initial liability in meeting any

legally proved claims which,[have not

already been met by the United Kingdom

Departments, because they are outside the

scope of claims normally accepted by them,

must presumably rest on the Hong Kong

Government; but that raises the question

of the extent to which the United Kingdom

Service Department should morally be asked

to contribute towards the expenditure

involved.