CO129-629-12 War Risk insurance- availability of contractors plant 1-2-1951 - 31-5-1951 — Page 47

INWARD TELEGRAM

TO THE SECRETARY OF STATE FOR THE COLONIES

вору Copy for

Registration

FROM HONG KONG (Sir A.Grantham)

452

FER

10

08.10 hrs.

Do 23rd February, 1951. R. 23rd

1951

Typex

PRIORITY

No. 212

Confidential

Begins.

Netherlands Harbour Works Co. Ltd.,

Paragraphs 10 to 12 of my telegram No. 197 on

Deep Bay and Kai Tak.

2. In order to persuade the company to remain in the colony I have undertaken that work to the value of about $ 2 million will be provided by the Government in

the ensuing twelve months.

3. The Company intends to insure its plant engaged on projects in the Colony against war risks through Lloyds underwriters and, in this connection, has sought to impose a condition worded as follows:

"Should Lloyds underwriters cancel the relative insurance policies during the period of execution of the contract the Hong Kong Government will automatically accept the war risk as far as the plant employed on the works is concerned. The insurance value of the plant in question will not exceed Hong Kong dollars 3 million and, in case the above mentioned eventually should arise, our

company will pay to the Hong Kong Government, during the period for which the latter accepts the war risk, the same insurance premiums as mentioned in the relative policies with Lloyds underwriters".

4. In view of its wide repercussions this condition cannot be accepted. If it were agreed to in the case of one company, many others would naturally press for similar treatment, and in the event of any claim ever arising, the moral liability would in fact rest with H. M. G. even though the risk might technically have been accepted by Hong Kong Government only. I would therefore be grateful if your would use your good offices with Lloyds to ensure that no question of cancelling the war risk policy will arise.

Copies sent to:-

Ministry of Civil Aviation

11

Air Ministry

Treasury

10

by Trade (Insurance Companies

Depu

-

-

Mr. W. C. Gawthorne Registry Tels. Mr. L. T. G. Sully Mr. D. F. Hubback

J-Wight