CO129-624-12 Finances- military administration 1-3-1951 - 31-12-1951 — Page 14

Secretariat file

25/2524/45 III,

Colonial Office

54126/8.

COPY

SAVINGRAM

14

To the Secretary of State for the Colonies

From the Governor, Hong Kong

Date 26th September, 1951

No. 1080

Your savingram 881 of 10th September, 1951.

British Military Administration advances.

Bailey and Co. Ltd. (in voluntary liquidation)

This Government negotiated on behalf of the United Kingdom Government with Bailey and Co. Ltd. for a settlement of claims and counter-claims which, when finalized, showed a sum of $109,035.62 as an irrecoverable advance. These negotiations were prolonged and, when agreement was eventually reached, it was recorded that, in return for a full and final settlement, the company would drop a claim of rent for the shipyard during the period of the British Military Administration.

Enquiries reveal that, as a result of the voluntary liquidation of the company, assets are in fact available against which a claim for $109,035.62 could be met at least in part. It is felt that to raise a claim now would be contrary to the spirit in which the original settlement was accepted by both parties each acting in good faith. The question of rent for the shipyard would undoubtedly be raised again.

I will address you separately regarding the outstanding item of $72 in connection with the Hong Kong and Whampoa Dock Cɔ. Ltd.

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