CO129-606-6 Hong Kong Loan- Financial settlement 7-3-1949 - 23-12-1949 — Page 64

measures. I feel sure that this will be

accepted as the only basis which can

logically be defended and that there are

A fairness

-

no good grounds on which the creation of

denial a specially favoured category of/claims

could be justified.

(ii) It is thought that no les al liability

exists against Government except in cases

where legal liability can be established

under the local Defence Regulations.

(iii) Nevertheless there may be cases in

which legal liability can be established under the Compensation) De fence/Regulations,

although when those Regulations were drafted

extensive denial measures necessitated by

imminent enemy occupation of the Colony had

not been envisaged. Cases where a claimant

is able in spite of practical difficulties,

to prove legal liability against Government,

must be considered as the exception, rather

than the rule, which would place the claimant

in an exceptionally favourable position in

relation to other persons who have suffered

war damage to their property, and thie

(which

a

favourable position can not be justified on

fairness

any grounds of equity.

(i) where legal liability against Government

eould be proved, the liability must be met by

the local Government,

3. The difficulties which would arise

if any other basis than that set out in

Were Taken

paragraph 2 above, can perhaps be judged by

reference to the final paragraph of Section 4

of Mr. Allen's Report.

7 local

? ption

Inset

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