CO129-622-6 Claims of War Supplies to Eastern Group Supply Council 21-1-1949 - 23-12-1949 — Page 11

CO129 Colonial Office Hong Kong Records 理藩院香港檔案 All

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Of el. eo. Gen. Houghing. w. 347 Conf.

Mr. Falmer. 10. Mr. Mitchell (China Assn). F.A. - (9)

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11.

Mr. Paskin

1. I am sorry to bother you with this dreadful case, but, in Mr. Sidebotham's absence, I think you should see our proposed reply to the latest

China Association reminder (10) and the comprehensive despatch to Hong Kong.

2. After you saw these papers (your minute of 17/12/48 on 18895/17/48) it was decided that they should be transferred to Hong Kong Department registration, but that initial minuting and drafting should be done by Finance Department. (Mr. Poynton's minute of 10/1/49 on 18895/17/48).

3. In a comprehensive minute of 7/2 on this file Mr. Palmer drew all the threads together and proposed a course of action. With Legal Advisers' concurrence (Sir Sidney Abrahams' minute 15/2) this was approved (Mr. Gortell-Barnes' minute of 17/3).

4. (9) deals with one aspect of the agreed action (the category "A" claim against the Government of India).

Draft "C" is the despatch to Hong Kong which deals comprehensively with all the claims connected with the Hong Kong War Supplies Board which appear on these files. Quite briefly the conclusions conveyed to Hong Kong are:-

(i) that, where not yet met, category "A" claims (for goods suppl) should be pursued, and we

will help where required

draft B to the Treasury

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see also (9) and

(ii) that category "B" claims (for goods which were in process of manufacture, but were not supplied) cannot be met, and

(iii) that category "C" claims (for reimbursement of advances made by local European firms to Chinese contractors to assist the latter in purchasing materials for manufacture) also cannot be met.

The amounts of the claims in the three categories are summarised at (11).

Draft B.

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