CO129-622-3 War damage compensation- requisitioned railway stores and materials 19-1-1948 - 31-12-1948 — Page 44

CO129 Colonial Office Hong Kong Records 理藩院香港檔案 All

is inevitable that in any event a large number

of claims will be rejected by the Service

Departments, in which case any legal liability

which exists in respect thereof will have to be

met by the Hong Kong Government. The above

likelihood

misunderstanding, with the possibility of Hong Kong

having to accept certain liabilities which she thought

Considerably

would be accepted by H.M.G., has to some extent

detracted from the good effects in Hong Kong of

the terms of H.M.G.'s financial settlement with

the Colony. It is therefore in our opinion,

the more desirable that when H.M.G. is clearly liable

to meet any particular claim H.M.G. should do so

with the minimum of delay. Otherwise opportunity

is given for the non-official members to criticize

H.M.G. in the Legislative Council, not only on

certain (to them) unsatisfactory aspects of the

general financial settlement, but also on specific

claims whose non-settlement we are in no

position to defend.

The above is the general background for my

asking you to assist in the settlement of one

particular claim against H.M.G. which has been

outstanding since 1947, and amounts to over $2,000,000

(£150,000 odd). While this claim is perhaps of no

great size from H.M.G.'s point of view, it is important

from Hong Kong's point of view.

Details of the

claim can be found in paragraph 5 of Wallace's letter

to Mussett (War Office) of 12th November, 1948

(55136/190/48), copies of which were sent to Wass.

It is of course for the War Office to settle this

claim and we appreciate that there may be difficulties

[+3

involved in agreeing the actual amount due; and the question has been complicated by being tied up with claims and

counter-claims/

43

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