CO129-622-6 Claims of War Supplies to Eastern Group Supply Council 21-1-1949 - 23-12-1949 — Page 69

54460/49

Dear Mr. Mitchell,

19th April, 1949.

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Thank you for your letter of the 29th March regarding claims arising out of the work of the Hong Kong War Supplies Board. Since I wrote to Keswick on the 27th January, the Department has been giving further examination to this problem with a view to ascertaining to what extent (if any) liability can be considered as resting on either His Majesty's Government or other Governments. This has proved a considerable task.

You are, I assume, aware of the payment of £150,000 made by the Ministry of Supply on the 25th March, 1948, for credit to the Hong Kong Government in respect of stores supplied to the Eastern Group Supply Council.

As regards the claim for $3,410,744 (£213,172) in respect of stores supplied to the Government of India in the last months of 1941, it appears that liability for meeting this particular clsin may be on the Government of India. He have accordingly telegraphed

to Hong Kong suggesting that they should again approach the Government of India and ask if a settlement could now be effected.

If this proves to

be unsuccessful, we shall have to consider what other action can be taken in the matter.

There is also a small claim for goods supplied to the Government of Burma costing $105,206 (£6,575). The Hong Kong Government appears to have submitted this claim to the Government of Burma who acknowledged receipt of it,

we are aware.

this claim can

but no payment has been made, so far as

The Departinent is accordingly seeing if be successfully pursued in any other way.

G. Mitchell, Esq.

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