CO129-629-12 War Risk insurance- availability of contractors plant 1-2-1951 - 31-5-1951 — Page 25

CO129 Colonial Office Hong Kong Records 理藩院香港檔案 All

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Government for failing to carry out these welfare schemes in accordance with intentions stated so recently. The Jockey Club has announced decision to make a donation of two and a half million dollars towards the cost of (b).

(D) could

be carried out with difficulties and slowly.

3.

A solution which has occurred to me, and which is possibly open to less objection than the one proposed in my telegram No. 516 would be to enter into an ordinary contract with a supplementary hire purchase agreement, which would only operate if an emergency, such as the firm contemplates, arose. Briefly, this Government would pay into a separate account monthly sums which, over the period of the contract, would represent the estimated value of the plant on the termination of the contract. No withdrawals from this account could be made except on the occurrence of a serious emergency and, if nothing of the sort arose during the currency of the contract, the money paid into this separate account would revert to revenue, and the only payment made to the company would be as stipulated in the normal contract. It seems unlikely that any other firm could present a convincing case for similar treatment, and this new proposal would reduce to small proportions any ultimate liability which H.M's Government might have to underwrite.

4.

I would again emphasise that Wimpeys have never specialised in the type of work proposed and that the chances of obtaining other suitable contractors either British or American are practically nil. For the reasons set out in the opening

paragraphs, I trust that you will find it possible

to approve my revised proposal.

5.

Grateful for very early reply.

Copies sent to :-

Ministry of Civil Aviation

#1

**

Air Ministry

Treasury

11

Board of Trade (Insurance

Company's Dept.)

Crown Agents

Crown Agents for the Colonies.

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-

Mr. W.C. Gawthorne Registry Tels.

Mr. L.T.G. Sully Mr. D.F. Hubback

Mr J. Wright

Mr. Foxlee

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