CO129-611-1 Hong Kong Electric & China Light & Power Company Ltd. 1-12-1945 - 2-5-1947 — Page 25

MH

Tel. No.: Wtehall 1234

NATIONAL

CHEM

Your l'eference

54224/46

Treasury Reference. S.52905/01

Dear Mr. Palmer,

TREASURY CHAMBERS,

GREAT GEORGE STREET,

20

LONDON, S.W.1.

23rd May, 1946

19

25

I refer to your letter of 9th May to Mr. James, on the agreement with the Hong Kong Electrical Companies.

We have since spoken about the question of a rental payment for the six months during which the Military administration used the plant, machinery and buildings of the Company, and you said that under the Hong Kong Compensation Defence Regulations the Government was bound to pay rent for such services taken over under the Military administration. We agree in principle to the payment of rent, but we question the basis on which this rental is assessed in paragraph vi of the agreement at 4% of the market value of the issued shares of the two Companies at 6th December, 1941. We can see no reason for taking this as the basis of assessment, and we consider that it should be the basis allowable under the Hong Kong Defence Regulations.

Yours sincerely,

J. Dawson.

H. Palmer, Esq., O.B.E.,

Colonial Office.