CO129-615-5 Harbour craft used by Hong Kong Government- financial arrangements 11-1-1949 - 27-1-1950 — Page 4

1 Su (48, 58,163) 59508/45

(34)/55397/48

wit att..

will there

will of

84 craft

of (71)/18330/16/1/1/46. This sarp 'you Course appreciate that the cost of has been bome by Hing cartext appear at first sight to be a clear-cut admission.

But can it be said

mus its

that this covers all the craft uns involvedy and that the wording precluded subregments adjustment of coat was felt to be an

Indrat equitable distrion of expenditure pending such adjustment?

It seems to me

whide structure built on

flimsy

Endlo 1-6 to (8)

and not worth taking into

Consideration.

3

stated

to HK (in conectim with the for Depts.

It has already been admitted, both

4

Settlement: Se (5)/1948) and

that HK will have to

ncial

craft

and here, to pay for

for these "We have therefore

charge

shamed be

any charge is raised! to produce reasms cohy, raised, not charge arises.

I think are

(a)

next

to

that mo

f

By see tard approaches which

no questim of a

ما

mutually exclusive:

The liability is King King's but

should be

the

reasons forgiven in viere of

Stretched in him. Wallace's

Mr. minute of 18/12/46 (pova-3), the impossibility of establishing the the craft,

history of the

& the

fact

that

HK had to bear expenditure ammenting to $1,800,000 (paraic of (3))

craft

& that the

not worth as much as

has bun said.

(6)

These

craft wore either supplies

part of the Britt, Plan, needs arising fine game procurement unse

on to meet

in the

that

gotoplan, or

plan, to replace craft meant for the Bing.

but

They

Labin

by

the Navy (para 10 of (8)). therefore either straightforward

Bina Stores, and

"hangoon' stores &

charge arises, or

Handtreated

fall to be treated

in accordance with the decision on

the celebrated Caine Conubie letter

5/7/48, mut

yet

1

answered.

we have

Already

I think (a) is sounder: conceded the point of liability, and

sure what the effect of stirring up

very large steeping dog

might prove to be. draft, viry

such a

" hangoon Stores I therefore attach

a

much for