CO129-622-3 War damage compensation- requisitioned railway stores and materials 19-1-1948 - 31-12-1948 — Page 61

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(3) on 53627/48 (Paras. 1 14 only)

of the 20th July, to which I have already

referred, Scarlett mentions the Hong Kong

Government's claims against the Chinese

Government for the return of coaches and

•

wagons belonging to the British section

of the Kowloon - Canton Railway. At our

short inter-departmental meeting on the

12th August before Mr. Hsu arrived I

mentioned that the Hong Kong Government

has in fact obtained the return of these

coaches and wagons and that this

particular claim against the Chinese

Government may be considered as closed.

To complete this picture I enclose a copy

of the relevant paragraphs of Hong Kong

despatch No. 68 of the 6th April

7. The fourth and last point to which I'

wish to refer here is that raised by Wass

in his letter to you of the 13th August

((a) above) - viz. who should make the

immediate payment to individual claimants

for rent of, and damage to, the property

occupied by Chinese troops. I also refer to

the statement in your letter of the

2nd October to Scott ((e) above) that you

are awaiting advice from the Treasury in

due course whether you or the Colonial

Office shall be responsible for making the

immediate compensation payments. There is,

I think, a misunderstanding in that

statement.

The decision as to who should

be liable for immediate payment rests

between