CO129-622-6 Claims of War Supplies to Eastern Group Supply Council 21-1-1949 - 23-12-1949 — Page 39

Tel. No.: Whitehall 1234.

BR.

Your Reference.........

Treasury Reference..

NATIONAL

SCHO

(BIZZA JINUT

IF 4/09

Dear Walace,

3923

TREASURY CHAMBERS,

copy sent to Accts.

сом

GREAT GEORGE STREET,

LONDON, S.W.1.

18th June, 1949

We have been looking into the question of liability in the case of the claim of the Hong Kong Government against the Government of Burina, for stores supplied, discussed in

(14) your letter to Atherton dated 22nd April, 1947. 1948

The claim relates to stores supplied in 1941 to the Government of Burma apparently for civil and civil defence

use.

The relevant legal instruments affecting liability are the Burma Treaty of 17th October 1947, and the Financial Agreement printed in Hansard of 22nd May, 1947 (Columns 276-7).

attached

I think the implication from these instruments is clearly that the provincial Government of Burma took over the country as a "going concern" and became responsible for all liabilities. The debt in question does not appear to relate to military. supplies and should, I suggest, rank as an ordinary debt due by the Government of Burina.

I suggest that, without entering into discussion of the above points, the Government of Hong Kong should again approach the Government of Burma. Fran your letter I take it that Burma has not as yet made any suggestion that the claim should be rejected.

Delay in writing is regretted.

W.I.J. Wallace, Esq.,

Colonial Office.

Yours sincerely

Hospit