CO129-622-4 War damage compensation- requisitioned railway stores and materials 28-1-1949 - 16-2-1950 — Page 52

Office however suggest an interim settlement

of £12,500 which represents approximately

2% commission on the admitted Kowloon-Canton

Railway (British Section) and Chinese claims as

revalued by the War Office plus the claim for

freight.

3. So far as the British Section's claim

is concerned, no difficulties arise over

Items 1 and 2 which are agreed at the figures

claimed. The War office have added two further

items which were not included in the claim

and are shown in the enclosed statement as

Additional Items 4 and 5.

They are however unable to admit Item 3,

which, as it stands, includes an unspecified

amount for the manufacture of missing parts necessary

for the fabrication of the 600 40-ton wagons,

materials for which were requisitioned from the

Chinese. It would appear from two telegrams

TNS/76308 and TNS/76307 of 26th June 1941 from

C. in C. Middle East to G.O.C. Hong Kong and

C. in C. India respectively, copies of which I

attach, that instructions were given for the

manufacture of some deficient material in Hong Kong,

but that buffers and drawhooks were to be made in

India, where fabrication of the wagons was also to

be carried out. The only evidence so far traced

here that deficient material was actually supplied

by Hong Kong is the enclosure to a letter dated

16th October 1941 from the War Supplies Board,

Hong

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