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

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Draft B to the Treasury pursues the category "A" claim against the Government of Burma. I do not think you need be bother with this.

Draft A is the proposed reply to the China Association.

5.

Draft A says what is being done about category "A" claims and is non-committal about the "B" and "C"

claims. Mr. Palmer and I think it is not for us here

to tell the China Association the decision on the

category "B" and "C" claims before the Hong Kong

government know of it. In any case the decision is

really one which should be communicated to the claimants

in Hong Kong by the Hong Kong Government.

If the brief last paragraph brings telephonic

enquiries we may then have, "off the record" as it were, to tell Mr. Mitchell that we see no hope of category "B" and "C" claims being met. If he makes a further written enquiry we shall have to consider our line of reply when the occasion arises.

From the enclosure to (1) it seems that the China Association are chiefly interested in the category "C" claims (as one would expect). Yet in (1) Mr. Keswick says that the sum involved is approximately £390,000. This is far in excess of any category "C" claims of which we have record (these claims in fact add up to a comparatively small amount) nor can Mr. Palmer or I equate the sum of £390,000 with any explainable combination of other claims (see 11). I see no point in saying anything about this to the China Association, however, since we are not going to pay "B" and "C" claims anyway.

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