TNAG-0098-FCO40-134-Construction-of-a-Cross-Harbour-Tunnel-1968 — Page 62

Reference.....

132

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Mr. Carter (Hong Kong Department)

I do not think your assumptions in paragraph 6 of your

minute of 16 August are correct.

(a) If there were to be a proper successor government to the

present Hong Kong Government, agreements would be made between

that successor government and H.M.G. as regards assets and

obligations, and if these agreements followed the pattern

elsewhere, the successor government would take over all the

assets and be responsible for all the obligations of the former

Hong Kong Government.

(b) If there is no proper successor Government with whom

agreement could be reached, then it is possible that HMG would

freeze Hong Kong Government assets in the U.K. and out of those

assets presumably would pay first the U.K. creditors of the

Hong Kong Government, and then amounts due to expatriate

pensioners and perhaps allowances to destitute British subjects

I will deal later in this minute with the

from Hong Kong. [1

question whether such assets could be used to meet any claims that

E.C.G.D. might have in respect of guarantees in relation to the

Tunnel.

(c) As regards assets of private individuals, [I agree with you

that th

that these are in a different category and, even though such

individuals might be resident outside the U.K.,I cannot see how

Government interference with such assets could in any way be

justified; particularly as in many cases the assets would belong

to British subjects. In my view such assets could not be treated

on the lines that the assets of enemy subjects have been treated:

in the past.

2.

As I understand the main proposal, it is that E.C.G.D.

should guarantee repayment by the Hong Kong Tunnel Company of

loans made to that Company by U.K. banks. I do not see how a

/ claim

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