(iii)
46
no general ex gratia War Damage Compensation
Scheme in Hong Kong, no special ex gratia
compensation can be paid in the case of the
claims now under consideration in respect
of vessels whether "denied", used as block
ships, or sunk by enemy action or otherwise
lost or damaged. I feel sure you will agree
that to adopt any other course, i.e. deli-
berately to create a specially favoured
category of claims, would give rise to
extremely awkward repercussions.
Claimants nevertheless may, in certain cases
and in spite of difficulties inherent in
the circumstances existing at the time and
of the absence of complete records, be able
to establish legal claims against Government
under the local Defence (Compensation)
Regulations.
(iv) In cases where such legal claims are
5.
established, liability must be accepted by
the Hong Kong Government.
I am aware that there is a strong feeling in
certain quarters in Hong Kong that the moral liability
rests with His Majesty's Government, even though the legal
liability may rest with the Hong Kong Government. I feel,
however, that there are other factors to be taken into
consideration besides those to which weight has been given
locally. I regard it as important to distinguish between
moral liability for the fact that the damage occurred and
the general moral responsibility of a Government when losses
have been incurred in its own territory by its own
taxpayers to decide the extent to which it is proper that
compensation should be paid to assist rehabilitation.
As regards the moral responsibility for the fact that
the damage occurred, in my view, which I am confident
/that
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