8
I agree,
in similar circumstances which were not requisitioned, but which
according to the Chinese Government were under
prohibition by the Hong Kong Government from being removed (see tab X X in the enclosures to (11)). We have not before had details of this large claim, totalling £942,449, and it is quite distinct from the others referred to above since there was no requisitioning and therefore no War Office or other U.K. interest as far as I can see, and if there is a claim at all it must, I think, lie against Hong Kong for prohibiting removal of the material. But it is a flimsy attempt; even if it is
established, which it has not yet been, that Hong Kong did issue such a prohibition, there is no evidence that the Chinese Government had either the intention or the ability to move the material and were in fact frustrated from doing so. In so far as this claim has been considered here, it has been agreed that it should be dismissed outright. There are indications that the amount of £27,000 contained in Voucher 011 has already quietly been dropped, and it seems unlikely nowthat the Nationalist Government will bring forward again the claims on the other two Vouchers. If the Communist Government do inherit details of the claims by some means, we might perhaps have to reconsider what our attitude should be, although I do not see how any different one could be indicated. Meanwhile, I think we may just let these claims slide.
I attach a draft to the War Office.
انا
MListmes
30.12.49.
Thank you
Hall
Page
Page
13. St. Col. G. V. Seymour (w. o)
14. P. D. boates (1.0) 15. D. J. Atherton (Ty)
:(13)
-
} ~41(13)
5-1-50.
5-1.50
Mr. Kickison
F.A-1-113
Im Palmer
Mn Hall
I attach a
Dacker who
was
Canton-Kowloon Railway
of letter to Lr-Col, Manager of the
whom Sir Mark Young suggested in his
in
1941
and
should consult; See
Kirkeness's
minute
despatch at (5)
on 55
55136/90/47 that we Lowever 'x' in Mu
suggested
if they
If the
of 35/12 alove
the War Office pay. up
in (13) roposite (para 5) and
accept the solution proposed in (6) 54488/50 by E.C.G.D. regarding the Chinese part of the railway materials claims the only outstanding item should shortly
be the one
on which we
are
seeking
Lt. Col: Walker's assistance. If he
help as to get at the
If the Goo tincks
can
Jacks
ou
the
questioni
we ought to be able
last to dispose of this long drawn out
business.
لله
age 9
9
I have
suggested on
54488/50 that a
copy off (61
on
"Itrat fill & of my
minute
reference.
there of 3/2/50 should be registered here for
If Rawclough
4/2/50
9/2/50 the.
H43)
ser also
54447/5/45
age 9
Page
Page
Mr. Palmer
Mr. Hall.
10
Copy of
minutes
on
54488/50
15A
15A
If the solution proposed in (X) opposite is accepted it means effectively that the War Department can be looked upon as having met a claim of £185,847 from China for requisitioned railway material (see (9) on 54449). Thishas an interest for us in
connection with the claims against the War Office by Hong Kong dealt with on 54447/5/49. In (13) on that file we requested the War Office to pay £12,500 as an interim settlement on the War Supplies Board claim in respect of freight and 2% commission on the value of Chinese equipment shipped by the Canton-Kowloon railway (see in this connection paragraph 3 (i) of Mr. Kirkness' minute of 30/12/49 and paragraph 2 of (3), both on 54447/5/49). This settlement was interim precisely because the value of the Chinese claim had not been determined and it was therefore impossible to determine the 2%Commission item.
ISA
If however the proposal of the E.C.G.D. in () is agreed, £185,847 can be treated as a final figure and we can approach the War Office to get a final
settlement on the War Supplies Board claim.
I suggest that for the moment we should wait and see what reply the War Office make to (and that in the meantime a copy of (5) and this minute should be put on 54447/5/50 for reference purposes.
There is action also on 54447/5/49 attached.
(Sgd.) A. J. Fairclough.
3/2/50
~54488/50
I agree that our interest on behalf of H.K. can now be considered as confined to a final settlement by War Office in respect of the interim payment of £12,500. This depends upon (a) the exact amount War office will eventually pay for the Kowloon-Canton Railway Material which we are still trying to settle vide draft on 54447/5/49. (b) the exact amount of Chinese Claim against War office (now to be written off in view of No. 1) The £185,847 can now presumably be increased in view of claim 005 for £29,769 now enclosed in No. 11/54447/5/49 which War Office has so far refused to admit in the absense of a claim. If War Office now admit it in full as a claim by the Chinese Government, in fact the balance of £12,737 due from Chinese Government, vide 7/54488/49, becomes a balance of £17,032 due to the Chinese Government. We are not concerned with this but we are concerned in H.K. 2% Comm. claim which War Office admit in principle. Thus if war office now admit £29,769 as a claim against War Office then they should also admit H.K.'s claim of 2% for Comm. on that amount as a further sum due to H.K. in addition to above provisional settlement of £12,500.
16. £t. Gl. R.&. Walker
A.C.R.D.
(Sgd.)
H. Palmer.
9/2
16-2-50.
age 10
age 10Page 11
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