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it was appreciated by the 7.D. that there might be reason for further consideration. Omitting this particular item, but with this in mind, an agreement was reached through the Governor of Hong Kong to authorise an interim payment of £56,334 (paragraph 2 of our above signal refers).
Claim by the Hong Kong Supplies Board amounted to £17,317. This was on account of freight charges and 2% Commission. The charges involved both the Chinese Government and the British Section Kowloon-Canton Railway Claims. The War Supplies Board claim actually amounted to a claim from the Hong Kong Government itself as the Board itself ceased to exist when the Japanese occupied Hong Kong. Proof was established of the legitimacy of a clain, but here again the full amount notified could not be admitted in toto, as the Chinese Government claim had a bearing on the resulting freight charges. A compromise was reached and again an interim payment was the resultant answer. This payment to be in the sua of £12,500. (Paragraph 3 of our above signal refers). The two suns authorised will presumably be paid to the Hong Kong Government.
I may assist in clarifying the position for you by supplying extracts from relevant correspondence. We therefore attach copies of the Governor's despatch No. 80, dated 10th April, 1947, and an extract from the Governor's Savingram
No. 974 dated the 25th November, 1949. (Paragraphs 3, 4, 5 and 6 of this Savingran refer to the item which the W.D. cannot accept on the evidence supplied to date, i.e., 600 Railway Wagons.)
/Should
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