25
Colonial Office No.54447/5/49. Sect. File No.1360/45.
(3)
SAVINGRAM
To the Secretary of State for the Colonies.
From the Governor, Hong Kong.
95
Date....
No. 474
November,....1949 €
Your savingram No.235 of 25th February, 1949. Requisitioned Railway Materials.
1.
I agree that it is expedient to settle the War Supplies Board and Kowloon-Canton Railway (British Section) Claims as far as possible separately from the Chinese Ministry of Communication Claims,
but of course will be glad to be kept informed of developments, concerning the latter as they affect the War Supplies Board Claim.
2.
War Supplies Board Claim.
The War Office proposal is acceptable on the clear under- standing as indicated in para. 2 of your savingram that it is an interim settlement only.
Kowloon-Canton Railway (British Section) Claim.
30
The War Office proposal is acceptable but again only on the clear understanding that it is an interim settlement. With regard to Item 3, it has been possible to collect some further though indirect evidence of the type of material supplied for preparing the 600 wagons. This consists of a letter (a copy of which is attached) from Mr. L.C. Su, Managing Director of the South China Iron Works, Ltd. to the General Manager of the Kowloon-Canton Railway. Contracts totalling approximately $900,000 are believed to have been placed with this firm and with Messrs. Liu Ho Kou Iron Works, Ltd., and Mr. Su indicates the type of article which his firm was asked to manufacture. This clearly shows that the Kowloon-Canton Railway in preparing the 600 wagons for fabrication had more to do than "sorting, marking, preparing and delivering to ship." Further- more it is known that the requirements of the War Supplies Board were considered of sufficient magnitude to justify the engagement temporarily of a Chinese Engineer to supervise their supply and in particular to ensure that the 600 railway-wagons were properly completed and shipped]
40
A
It is considered probable that the majority of these materials were paid for by the Hong Kong Government though of course no receipts or evidence of this now exists. In this connection, it is not clear from your savingram whether Col. R.D. Walker has been consulted, as was suggested in Sir Mark Young's despatch No.80 of 10th April, 1947. He might be able to throw some further light on this matter. It is very doubtful whether any further valid evidence of the actual manufacture of materials will be found in Hong Kong, so that Col. Walker's views might be of great value in substantiating this Government's claim. The present War Office proposals are regarded as ungenerous but this Government has little material with which to support its claim for a more equitable settlement.
5.
1000
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