CO129-624-11 Finances- financial settlement 1-1-1950 - 30-6-1950 — Page 41

Extract from Appendix "C" to the Annexure to Confidential Despatch No. 193 from the Federation

of Malaya dated 23rd November, 1948.

To summarize:-

(1) The authorities are conflicting and no certain

advice can, therefore, be tendered.

(2) In our opinion :-

(a) There is a legal right to compensation for tin mining machinery, plant and equipment, factories and machinery on rubber estates, sawmill equipment, and electric power plant, appropriate to the particular industry carried on on the land. There is also a legal right to compensation in respect of vehicles requisitioned under the Order published in Federated Malay States Gazette Notification 4432/39, or any similar Order if any such was made.

(b)

There is (probably) no legal right to compensation for goods not requisitoned under such an Order or for goods destroyed, other than machinery, plant etc. as aforesaid identifiable with the land as being appropriate to the particular industry conducted thereon.

(3) Where property falling within paragraph 2(a) above

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was taken or destroyed by the Military authorities, the Military authorities are liable to pay compensation therefor. Government would vis a vis the owner of the property be liable for compensation for property denied on the instructions of the civil Government as part of a pre- arranged denial scheme. But even as regards such property, inasmuch as the denial measures were taken by direction of the Protecting Power as part of that Power's responisibilities under treaty obligations, there would seem to be an honourable obligation resting upon the Imperial Department concerned to pay this compensation.

The same consideration apply to any ex gratia payments which may be made under paragraph 2(b) above.