CO129-606-6 Hong Kong Loan- Financial settlement 7-3-1949 - 23-12-1949 — Page 56

CO129 Colonial Office Hong Kong Records 理藩院香港檔案 All

54

(36) & (46)

1948

accepted by the Hong Kong Government

unless the United Kingdom Service

bes

Department concerned accept liability

in any particular case in the light

of its existing practice.

5. The question then arises if

any assistance should be given by

His Majesty's Government to the Hong

Kong Government in respect of

established legal claims under paragraph

4 (iii) above. I must in this connection

refer to the free grant of £1 million

which was given to Hong Kong by His

Majesty's Government "to assist the

Government of Hong Kong in resolving

problems arising out of expenditure

connected with the war". At the time

when the financial settlement between

His Majesty's Government and the Hong

Kong Government was reached, there was

some misunderstanding in Hong Kong on the

point whether the liability now under

consideration was included as one of the

items of "expenditure connected with

the war". (See your telegrams No. 406

and 426 of 22nd and 27th April, 1948).

consideration of whether His Majesty's

However, repr-sentations in thie Government would be prepared to give assistance connection are bound to be larely

in this matter commot be taken further

academic until the actual cost of this

liability is known; that is, until

the problem has finally been disposed

of on the lines suggested in

paragraph 4 above.

16.

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