o.g. in Malaya, in view of the great commercial prosperity enjoyed in the Colony since its liberation. As a result of that prosperity much of the loss had already been recouped from profits, and rehabilitation of industry and commerce was not being held up by lack of financial resources. As regerds those persons who had returned to this country after the liberation of the Colony and who did not intend to go back to Hong Kong, and who cannot therefore be said to have benefitted from Hong Kong's post liberation prosperity certain grants in respect of losses of chattels had already been made by His Majesty's Government in the case of those who had been in captivity by the Japanese. A general scheme of compensation in respect of such losses in the case of all persons from our Far Eastern territory (including Hong Kong) who set up house in this country is now under consideration and if this is eventually agreed to by His Majesty's Government the Secretary of State's defence of Hong Kong Government's decision will be considerably strengthened.
Can you say what progress has been made as regards the general scheme which is I assume being sponsored by the Board of Trade?
It will I think be necessary to submit the memorandum to the Treasury and to the
Government
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