120/Overseas/300(1.of L(0)).
Dear
Walace,
COMPTROLLER OF LANDS AND CLAIMS,
War Office,
Nuffield House,
Piccadilly,
47
Regent Sti
35
London, W.1.
3th November, 1948.
(43) I wish to refer to your letter 55136/90/48 of the
12th November, 1948, addressed to Mussett as it should now be possible to carry these negotiations a stage further by replying to the claims lodged by the Hong Kong Government in Sir Mark (5) '47. Young's Despatch No.80 of the 10th April, 1947, as far as they
affect (a) the Kowloon-Canton Railway British Section, and (b) the War Supplies Board. Both these claims are considerably in excess of the figure the Transportation Branch of the War Office (who were responsible for the requisition of the railway material) are prepared to recommend. in settlement, and their observations are given in the following paragraphs.
2 Sir Mark Young's Despatch, para 4. Item one is agreed at £9,432; item two, is agreed at £13,410. Item three, amounting to £108,000, appears to be based on a misinterpretation as this figure was first mentioned in a cipher telegram from G.0.C. Hong Kong to C.-in-C. Middle East (No.6121 of the 1st July, 1941) as the "cost of manufacturing missing materials" to complete the fabrication of 600 wagons. These missing materials were, in fact, not manufactured or obtained in Hong Kong, but in India, and therefore the sum of £108,000 is not due to the Hong Kong Govern- ment for this work. There is, however, a sum of £28,650 due for
sorting, marking, preparing and delivering to the ship 9,550 tons of wagon material at £3 per ton."
3 In addition to the claim submitted by the Hong Kong Government there were two items not included which it is suggested should now be settled, namely, for 3 tank locomotives shipped to India in October, 1941, for conversion. These locomotives appear similar
/to the
w.I.J. Wallace, Esq.,
Colonial Office,
Church House
Great Smith Street, S.W.1.
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