2
-55178/21 A/4/-
should be giant by HMG
4.
grounds,
On the above base the basis on which
this problem should be dealt with in Hong Kong
appear to be as follows:
63
(1) As, in accordance with the recommendation in
your despatch No. 281 of 29th November 1947, there
is no general ex-grantia 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, extremely
would give rise to jawkward 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.
+
such legal claims are established (iii) In these cases where/(i) operates, liability
must be accepted by the Hong Kong Government
Hong
(unless
(UK)
except in any cases where the Service Departments
Particular case
concerned
(accepts liability in the light of their existing
practice.
5. The question then arises if any assist- The Hong Kong Sremment-
Government /in
ance is justified by His Majesty'
Restollished lead claime under paragraph respect of 4 (iii) above, on the grounds of
monal"-diability of the Service Departmenter the service Departmenter
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
1
/reached,
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