CO129-615-4 Harbour craft used by Hong Kong Government- financial arrangements 30-1-1948 - 12-1-1949 — Page 40

OUTWARD TELEGRAM

FROM THE SECRETARY OF STATE FOR THE COLONIES

407

Dft. on 5:126/6/48

Coda

TO HONG KONG (81x A. Grantham)

Sent 25th May, 1948,

13.45 hrs.

MOST 1MMEDIATE

リ

пр

No. 589 Confidential.

10

Your telegram No. 487.

I have the following commente to make on your proposed replies to the questions to be asked on 26th May,

20

I agree as the grant was not intended to be related to any specific liabilities,

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B. and C. I am not, of couree, able to check the amounts in question, As regards particular items I am not aware of what is involved in atom (h) repeat (h),

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Item (g) repeat (g) 12 it is in respect of craft referred to in paragraph 31 of your despatch No. 292 seems to be in a different category from the other itams, in that it represents a debt for goods supplied, wheroae items (a) to (f) represent expenditure for which the Government has received no direct return. In other cases doubtlese the Hong Kong Government in post-war condi tå ons has had to purchase stores which are not entirely suitable for its requirements or at higher prices than normal and to that extent a certain part of the expenditure might be said to "srige out of the war", You may consider

therefore that this item does not strictly come within the terns or questions B and C,

5.

0

12

I assume the phrase "all remaining liabili 4103 in the third sentence following the phrase "The position regarding these liabilities is as follows" should be Mall the liabilities referred to above",

6.

3

As regards item (1) and the sentence beginning *So far as can be seen" 1 would refer to paragraphs 1 3 and is of my telegram No. 533. The extent to which the Hong Kong Government is legally liable to meet "denial" claims whether there ves prior requioitioning or not is primarily one for the Hong Kong Governnoat to decide. I fear, however, that I cannot accept the wording in your telegram "and since the Service Departments were concerned negotiations are proceeding with those Departments with a view to their meeting those claims' That phrase goes far beyond the terms of paragraphs 3 and 4 of my telegram No. 533 and I must ask that in dealing with (1) you should adhere to the terms of those paragraphs.

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