CO129-606-6 Hong Kong Loan- Financial settlement 7-3-1949 - 23-12-1949 — Page 61

see paragraph 5 (a)

or say 1 million, then we

211⁄2

must consider to what extent Hong Kong has already

(trans mesting this type of claim

received any assistance from His Majesty's

Government in the form of the free grant of £1

million. That grant was not specifically related

to any particular liabilities, but was intended to

assist the Hong Kong Government in dealing with many

(that

items of expenditure which the Hong Kong Government

considered as morally the responsibility of His

In my letter to Serpell of

Majesty's Government.

the 2nd March 1948 I enclosed a schedule

off t

the

15

5-9

various liabilities which the Hong Kong Government

considered should rest on His Majesty's Government

amounting in total to £5 millions which included £1

millions in respect of denial claims. In fact, the

did Treasury at first not agree to give any

1947 fle

25

1908 file

assistance in respect of the total of £5 millions,

but eventually a grant of £1 million was agreed to at

the last moment, owing to the Governor's strong

representations regarding the first item (a) Volunteers

etc. amounting to £1,007,000 (see prepar his

telegram No. 402 of 21st April, 1948). The Governor

would thus have good justification for claiming that

did the £1 million could not include any assistance in

respect of the claims now under consideration. (see

his telegrams Nos 406 and 426 of 22nd and 27th April,

1948). At the time, our attitude caused considerable —–

consternation locally, On looking at the problem

cannot altogether exclude from consideration the fact again I think we must bear in mind that we have recently agreed to double the grant to the Malayan Governments

in respect of their war damage compensation scheme, sünd Taking all the factors into account in the case of the

'that'

might ultimately be a

Hong Kong claims, there seems to us there is a good

case for asking His Majesty's Government to make a

up to, say,

further grant of 65% of 81 million (say et million) or 65% of whatever is eventually found to be the amount

3646

1948

Omit

actually spent, subject to a maximum further grant) of perhaps,

(further 2

/ £1 million.

ал

n

approximately

of £1,000,000 the figure of t

taten

65% of #timillions referred to above

on the Malayan precedent-

equivalent to the

grant initially offered.)

ammond of th