CO129-622-1 War damage compensation- U.S.S.R. claims 25-5-1948 - 22-1-1949 — Page 88

With Mr. Haigh's Compliments

89

WE WORT. 4

29th June, 1948.

Dear Lambert,

See(7)

Thank you for your letter and enclosures of the 23rd June (N 6772/1485/38) about the Soviet steamships "Simferopol" and "Svirstroi".

I do not think that I could go so far as to subscribe to the doctrine that the Russians are trying to make the best of both worlds in that, we having up to the present declined to admit liability for the loss of the vessels under their war risks insurances, the Russians remain free to dispose of their property as they see fit. It is true that on presentation of theirclaims the Russians tendered notice of abandonment of their interést in the vessels but this we immediately declined to accept, following normal insurance. practice, because by accepting abandonment we should merely be inheriting the liabilities of ownership in respect of such matters as the lighting and buoying of the wrecks and the costs of their removal if they become obstructions to navigation. By declining to accept abandonment we do not deprive ourselves of the benefits of anything to be salved should we ultimately be persuaded to accept liability under the war risks insurances because under the Marine Insurances Act 1906, we should become subrogated, on payment of the claims to the benefit of any proceeds accruing to the owners.

With regard to the expenses which the Hong Kang Government have incurred in maintaining watchmen on board it seems to me that we should continue to press for re-imbursement by the Soviet Government but whether or not the Hong Kong Government would be within their rights in selling the wrecks for the purpose of

A. E. Lambert, Esq.,

Foreign Office,

S.W.1.

RECEIVED

1 - JUL 1948' C. O. REGY.

/securing