SAVINGRAM
To the Secretary of State for the Colonies.
From the Governor, Hong Kong.
Date
No.
2
26
(Don55136/00/+7
(11) 48
5.
There is also the point that evidence may come to light of non-payment by this Government for materials delivered. This is rather different from the normal case in which the War Supplies Board entered into a contract on behalf of the Ministry of Supply or the Eastern Group Supply Council. This concerned the purchase of certain parts necessary to bring requisitioned railway material up to standard for service in the Middle East. Considerable technical knowledge was required and it seems probable that the orders may have been placed by the General Manager of the Kowloon-Canton Rail- way (a Government Department) with the intention that all expenditure should be recovered in due course from the appropriate authority. Mr. L.C. Su has stated that there are still payments owing to his firm in respect of parts manufactured and delivered before the outbreak of hostilities but that he is handicapped in making a final claim by reason of the fact that his photostatic copies of invoices are in the hands of individuals who are difficult to get in touch with, in various parts of China. Messrs. Liu Ho Kou Iron Works have gone out of business since the War and no claims are likely to arise from that source.
6.
.
If the War Office would agree to a final settlement equivalent to half the amount (i.e. £108,000) claimed in respect of Item 3, this would be acceptable and I shell be grateful if this proposal may be made to them. In the meantime the interim settlement as indicated in para. 3 above is accepted.
7.
Chinese Ministry of Communications Claim for Materials Requisitioned by War Supplies Board.
The missing Invoice 005 mentioned in para. 4 of your savingram under reference was omitted from Sir Mark Young's despatch No.80 of 10th April, 1947 It is now attached.
8.
In connection with this claim, Invoice 003 includes two suns of £11,509 for 2 Skoda locomotives. These locomotives were returned from India after the war, the cost of transportation, unloading, and rehabilitation having been met by War Office representatives in Hong Kong. My savingram No.267 of 14th April refers to this transaction. Presumably this claim (though not the War Supplies Board claim for Commission) should be scaled down appropriately.
9.
47.
With regard to Invoice No.004 the comment upon it in
(5) on 55136/90/47 paragraph 3(ii) of Sir Mark Young's despatch No.80 of 10th April,
1947 is not quite correct in stating that the wagon material was held in stock by the Kowloon-Canton Railway on behalf of the Chinese Ministry. The material was stored by the Ministry itself,
10.
Chinese Ministry of Communication Claim for Materials missing as a result of an alleged prohibition against their removal from the Colony.
The original Invoices 009, 010, and 011 referred to in paragraph 5 of your savingram and which supported the further claim by the Jardine Engineering Corporation on behalf of the Ministry are now forwarded. There has been correspondence about this claim
between
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