64126/13/50
PRIORITY
SAVING
From the Secretary of State for the Colonies.
To the Officer Administering the Government of HONG KONG
Date 3rd June, 1950.
No. 83 Saving. SPORED
18
18.
1..
Hy telegram No. 785.
Financial Settlement.
+
Following are accepted principles on which His Majesty's Government bases decisions whether or not to pay compensation in respect of the capital value of goods, equipment etc. requisitioned (or purchased) by His Majesty's Government 1.e. geneally by the Service Departments and Ministry of Transport:-
(a)
(b)
if goods or equipment were requisitioned outright (that is, were taken with a promise or intention to pay the full capital value), or were supplied for the Department concerned to use as an owner in the normal course of business, and if no question of denial arose at the time of requisitioning, then His Majesty's Government has, subject to eatiafactory proof, a liability to pay which cannot be set aside by subsequent events. In effect this covers all casea where payment would have been made but for enemy occupation;
where goods or equipment were requisitioned for use only, there being no intention of outright acquisition but merely an intention to pay normal compensation for user, and 12 the goods or equipment were subsequently dentroyed for denial purposes or were otherwise lost, His Majesty's Government will pay compensation for use only, but will not pay for any dental element of damage or loss;
(0) in all cases of requisition of hire charters or
agreemente, e.d., in respect of vessels, vehicles and aircraft, payment of compensation w11) dapend upon the terms of the hire or charter agreement, and the legal advice received in each case;
(a) if goods or equipment were requisitioned solely for
"denie", no liability rests on His Majesty's Government.
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