CO129-606-6 Hong Kong Loan- Financial settlement 7-3-1949 - 23-12-1949 — Page 58

601B] Wt. 36325/814 50m. 1/49 C.N.Ld. 748

54126/6/49

53

Jr. A

C. O.

Mr.

Palmer

6 517 Mr.W...J. Wallace

Mr. Bourdillon

Mr..

Mr.

2 diffs.

DRAFT. LETTER

Permt, U.S, of S.

Your Reference..

COLONEL W.R. RUSSELL EDMUNDS,

H.M. TREASURY

Copy of Draft despatch

FURTHER ACTION. When

velutly issued, Copy with copy of

enclosure to:-

But LG, Robertson, A8)

G.R. CAIRNS M. C. War Office

F. SEVERS

Admiralty

S.W. WARRAN Air Ministry W.A. MITCHELL Ministry of

Transport

Parly. U.S. S.

2

Minister of State

Secretary of State

Dear Russell Edmunds,

For Mr. Palmer's signature

1. You spoke to me a little time ago about

the report of the Ministry of Transport' S

representative in Hong Kong, on the question of claims in respect of ships requisitioned and/or

'denied' prior to the Japanese occupation of the

(3) Colony. Now that our despatch of the 30th of

May to the Federation on the general question of

denial has been agreed, we must inform Hong Kong

of the line we propose to také in respect of

these particular claims in Hong Kong.

2. In Malaya, if the procedure suggested

(3) in our despatch of the 30th May can in fact be

carried out, the majority of 'denial' claims

should be dealt with under the war Damage

Compensation scheme. In Hong Kong however, as

there is no War Damage Compensation scheme,

the alternatives are either full compensation

payable under the Compensation Defence Regula-

tions in respect of proved legal liability of

Government (whether Hong Kong or His Majesty's

Government) or on the other hand, no compensa-

?

og berence

tion at all

all, These two extremes of one hundred per cent or nothing, increase the

difficulty of dealing with the problem, as we

have no method by which we can persuade

/claimants,