53
3.
The difficulties which would rise if
551
(2)
marked wired
M
on pinge 5 of the deport.
(88)
o 1948 file
m
5178/21A/47-
any other basis than that set out in
paragraph 2 above were taken, can perhaps
be judged by reference to the final
paragraph of Section 4 of Mr. Allen's Report.
4. On the above grounds, the basis on
which this problem should be dealt with in
Hong Kong appear to be as follows:-
*
(i) As, in accordance with the
recomendation in your despatch No. 281 of
29th November 1947, there is no gen ral
ex-gratia war damage compensation
scheme in Hong Kong, no special ex-gratia
compensation can be paid in the case of
the claims now under consideration in
respect of vessels whether "denied", used
as block ships, or sunk by enemy action or
otherwise lost or damaged. I feel sure
you will agree that to adopt any other
course, i.e. deliberately to create a
specially favoured category of claims,
would give rise to extremely awkward
repercussions.
(ii) Claimants, nevertheless, may, in
certain cases, and in spite of difficulties
inherent in the circumstances existing at the
time, and of the absence of complete
records, be able to establish legal claims
against Government under the local
Defence/Regulations.
(iii) In cases where such legal
claims are established, liability must be
accepted
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