CO129-627-7 Grants of land- new territories 1-12-1950 - 31-12-1951 — Page 5

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Mr. Peck

We spoke.

Please see Mr. Anderson's minute of 31st March for the background.

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The legal problem is not at issue, in that both in Mr. Rushford's and my opinion the advice given by the Attorney- General of Hong Kong is sound i.e. that the Company cannot at law claim the return of the premium and that any refund is a matter of grace.

But Hong Kong's proposals in this respect are very 'tough' since they mean that the Company will lose about $375,000, and I do not see the Company agreeing to this without a fight.

In view of the above I shall be glad to know whether you think that the Colonial Office or the Crown Agents should handle these negotiations, which may become protracted and

possibly devolve into an interchange of solicitors letters. (In this respect, please see paragraph 5 of Mr. Anderson's minute.) If you think that the Colonial Office should do it, would you please check Draft A which opens the negotiations?

I have spoken

J. E. Hofkumain.

t

Mr Pack about & in

2/5/51 fis K. Robert, Wray

my minute, a that the

camilers that

the C.O.

Sin K. Robats. Wany camilers

should handle the negotiations. If Company refute the legality of

tention

he states that it

to ark the C/Agent,

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behalf, but for the present le he comidery that this is not

J.E.H.

3.5.5.

I have made this Inmedente as the Company

xl Ma positivi.

3 deft hem th

neceromy

one roximes to know

In view of X abwo I have signed the letters for M' Hall, in his absence.

Jid Andurm

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