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Hong Kong Government, as civil heirs to the .N.A. should deal direct with China in this matter. ¡lave you or the Colonial Office any arguments against this point of view?
You will doubtless have seen Scott's letter of 15th July, asking the Colonial üffice for further information on a number of other claime Until the questions raised cre cleared there is little we can đo, but in the meantime we should like to put forward for consideration the idea of a general settlement to include all claims which are admitted in principle. I see no reason for confining the scope of the approach which will have to be made to the Chinese to claims which are connected with railway materials. It seems that by doing so we might possibly be foregoing some valuable bargaining counters. At the ease tice we ought to make it quite clear that the contentious clair put forward by the Ministry of Communications for railway material block in Hong Kong, and estimated at 0942,449 is excluded from settlement.
I am sending copies of this letter to scott and Scarlett.
Yours sincerely,
D. W. G. WASS.
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