CO129-622-3 War damage compensation- requisitioned railway stores and materials 19-1-1948 - 31-12-1948 — Page 41

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Hong Kong of the terms of H.M.C.'s financial settlement with the Colony. It is therefore in our opinion, all the more desirable that when H.M.G. 16 clearly liable to meet any particular claim II. M. G. should do so with the minimum of delay. Otherwise opportunity is given for the on-official members to criticise H.4.4. in the Legislative Council, not only on certala (to the:) unsatisfactory aspects of the gen ral financial settlement, but also on specific claims whose non-settlement we are in no position to defcad.

The above is the general background for my asking you to assist in the settlement of one particular claim against ....C. which has been outstanding since 1947, and amounts to over $2, ,000 (3150,000 odd). While this clain is perhaps of no great else from Hi.m.C.'s point of view, it is important Prom Hong Kong's point of view. Details of the claim can be found in paragraph 5 of wallace's letter to Mussett (ar office) of 12th November, 1243 (55136/190/48), copies of which were sent to ass, It is of course for the ar Office to cettle this claim and we ap reciate that there may be difficulties involved in agreeing the actual amount due; and the question has been complicated by being tiod us with claimg and counter-claume between the ar Office and the Chinese government. On the other hand there seems no reason why this particular Hong Kong claim against the war office should not be dealt with apart from the ar Office Chinese claims. You will appreciate that it places us in a difficult position when the Governor complains that the claim was first submitt d to 18 in April 1947, and that there is still no sign of a settlement.

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