CO129-622-6 Claims of War Supplies to Eastern Group Supply Council 21-1-1949 - 23-12-1949 — Page 102

With Mr. Malwing!

FB

angle compliments. G. E. Eales.

4/Overseas/11

F. 2. A.

I.F. 4/09

Treasury Chambers,

S.W.1.

106

21st January, 1949.

Dear Boughey,

40 on

48895/48

I am sorry that there has been some delay in dealing with your letter of the 14th December.

As regards the claim under Category 2 the probability is that the stores were charged against H.. Government under the Defence Expenditure Plan. We know that in other cases where stores were received in India without detailed price documentation, India estimated the value on the best evidence available and made an appropriate charge against H. M. Government.

It would probably be useful if Commonwealth Relations Office took the matter up with the Goverment of India pointing out that the stores were supplied during the period of the currency of the Defence Expenditure Plan and saying that we presume the cost has been charged to HM. Government and that it therefore falls to India to make payment now. Perhaps, however, as a first step the Colonial Office would ascertain the date on which the claim was lodged against India. Failure to lodge the claim before our recent discussions would not invalidate a claim against India, but the fact (if it proves so) that the claim was so lodged would be. an additional point in favour of India's assumption of liability.

With regard to claims under all categories B and C it is our view that these do not fall to be met either by India or H. M. Government. It cannot be too strongly emphasised that the Hong Kong Government decided against a War Risks Insurance scheme, under which certain deficiencies could, we presume, have been covered by the Colonial Office by virtue of the War Risks Insurance (Guarantees) Act, 1941, and in these circumstances we cannot agree

R.. Boughey, Esq.,

Ministry of Supply.

Adelphi,

W.C. 2.

/that

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