CO129-628-14 Compensation- requisitioned railway materials and stores 1-3-1951 - 30-11-1951 — Page 35

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the remainder of the line, although not operating,

was under Japanese control.

(ii) A similar claim by the British Section of the Kowloon-

Canton Railway.

(iii) The resulting claim both for freight charges and for

2% Commission by the War Supplies Board Commission.

Regarding the Chinese Government claim, this is still under negotiation and we do not propose to confuse you by going into the case in detail, sufficient to state, that a reduced amount from the original sum notified appears to have been established, and the Chinese Government (National) intimated in the Autumn of last year that they were prepared to accept a sum of £185,847 (the established figure) in full settlement; a proviso being made by them that settlement be made in cash. However, W.D. have a number of substantial counter-claims, which, would, of course, have to be taken into account before any overall settlement could be made.

In the case of the claim by the British Section of the Kowloon-Canton Railway. It has been established that materials supplied under requisition were in the majority of cases paid for by the Hong Kong Government. Investigation of the various items resulted in the W.D. being willing to admit liability in the sum of £56,334, the original claim being for £130,841. One particular item referring to 600 Railway Wagons could not be entertained by the W.D. on the evidence produced.

However,

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