CO129-624-14 Finances- relief stores- Hangover stores and Siamese free rice 1-7-1948 - 31-12-1951 — Page 97

not been despatched. In Caine's letter of 5th July, 1948,

writer

which was itself/nearly two years after the stores had been

delivered, we expressed our doubts even at that date about the

wisdom of pursuing the matter at all, and our doubts have increased

in the absence of any communication to the Colonies after a lapse of

Camis letter Admittedly we did offer to send telegrams

LAN

nearly another two years.

suggesting that a settlement might be reached with the Governments

concerned on the basis of the cost of stores which were retained

for those Governments' own use.

I need not repeat the factors

which we suggested should be considered by the Colonial Governments

in support of a settlement on those lines, but we feel very reluctant

to approach the Colonial Governments on that basis after the lapse of

two years.

Whilst we are immediately concerned with the position of

Hong Kong, we cannot ignore the position of the Federation of Malaya in

this matter, and it seems to us quite out of the question, even if only

from the financial angle, to submit any claim to the Federation on this

In that case we could hardly adopt a different attitude either

account.

93

to Singapore, or to Hong Kong. Our view thus at this date is that set

out in the final paragraph of Caine's letter, in which he said that if you

for your part decided that it would be the wisest course not to pursue the

matter any further, we on our side would take all possible steps to

(2)

ensure the appreciation in all the territories concerned of H.M.G.'s generosity

of came in foregoing those claims. Whilst therefore we could not object if you We very much hope, therefore, that you with us prepared not insisted in maintaining a claim against Hong Kong on this matter during the to prisue this particular question but hory further

course of the forthcoming negotiations, we do not consider we could

support you in that attitude. On the other hand, if you decided before

the negotiations commenced to announce that II, M.G. had agreed to waive any claim

against-Hong Kong on this account, we should do our best to ensure that H.M.G's

Hing Mong

generosity on the point should be fully recognised in and should be

announced as having been agreed to by HM. G. apart from whatever may be the

terms of the Supplementary Financial Agreement.

3.

I realise that the Treasury will require a little time to think this

over and in consequence the point, and the references to Siamese free rice

are referred to in a non-committal manner in the enclosed draft so as not to

/delay