CO129-624-14 Finances- relief stores- Hangover stores and Siamese free rice 1-7-1948 - 31-12-1951 — Page 115

losses incurred (difference between receipts from sɛles

and total invoice cost to His Majesty's Government is in

the region of £8 millions it is felt that there is a

very strong cuse for asking the Malayan Governments to

contribute a share of the total cost over and above what

they have already puid.

2. It is true that the goods inuestion, by force of

circumstances, were ordered without the knowledge of the

Kulayan Governments and that in certain cases they may

have proved unsuitable. As I said in my telegrɛm under

reference, His Majesty's Government are not repeat not disposed to adopt un uncompromising attitude in this

mtter, and I appreciate that a demand by His Majesty's

Government for rull payment in respect of these stores

would do much to undermine the political value of the

whole financial settlcment. There is, however, one

class of goods in relation to which I feel, after

considering the whole matter most carefully, that

further payment can properly be regarded us due from

the Malayan Governmenta. I refer to those goods which

were taken over and used by the Governments themselves

for their own purposes, with the result that there will

although the value of the

goods in question may have been considerable. I appreciate

have been no proceeds from sales

that at this stage it would be very difficult to arrive at

an exact assessment of the cost of any such goods or út an

exact apportionment between Singapore and the Federation of

Melayu. I do not repeat not feel, however, that this should

prevent a solution on broadly equitable lines. I should

be grateful therefore, if the two Governments unless they

have comments of principle (in which cuse they should

inform me without delay) would look into the mutter at their

early convenience and reach the best possible estimute of

the sume involved with a view to a final settlement being

reached.

J

3.

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