CO129-629-12 War Risk insurance- availability of contractors plant 1-2-1951 - 31-5-1951 — Page 43

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The Church Hrice,

Great 2rith Street,

8.1.1.

Warok, 1951. March,

3

41

Dear Fogles,

Ho,212 I enclose a copy of a Hong Kong telegram No. 212 about a request from tùs Netherlands Marbear Yorks Co., Ltd., that the Hong Kong Governant should sacept the wɛr risk as far as plent valued at $5 million in the event of Lloyds cancelling the insurance policies.

Briefly the position is that this Company is thought by the Governor to be the only firm in the Far East which can undertake dredging oporations and the construction of foundations for sea walls and is on the point of closing down in Hong Kong in view of the unsettled political situation and the poor prospects of ever obtaining contracts again in China,

The Governor fears that the closing down of the firm may hold up work indefinitely on the Kai Tak airport or the Deep Fay airport projects about which decisions have yet to be taken. In order to persuade the Company to remain in the Colony the Governor has asked them to undertake some reclaxation scheme S valued at $2 million and as you will see from the telegram the Company have raised the question of war risk insurance,

The Board of Trade have been consulted and we understan from them that Lloyds do not insure against war risks and there is in fact an international agreement amongst insurance companies on his point. You will see from paragraph ♣ of the telegram that the Hong Kong Government are not prepared to insure against war risks either.

2. V. 29, C.F.E.

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