In Thailand and Laos there had been no issue of Japanese
currency.
At the end of the war Japan was in a desperate economic position, with hardly any reserves to back up its currency. The United States provided vast sums of aid to prop up the Japanese economy. In drawing up the 1951 Peace Treaty the Allied Powers, mindful of the mistakes of the Versailles Treaty with Germany at the end of the First World War, realised that Japan was in no position to pay large-scale war reparations. Japan did agree in the Treaty to allow the Allied States to dispose of Japanese assets under their jurisdiction. In the UK
so realised amounted to £3,005,321 which the British Government decided to make available to former Far Eastern Prisoners of War, or their dependants, and civilian internees, or their dependants. A further sum of £1,636,281 was made available by Japanese for the UK "to indemnify those members of the armed forces ... who suffered undue hardship while Prisoners of War of Japan". Compensation was paid to some 50,000 UK claimants in instalments between 1952 and 1956. The UK Government and the other Allied Powers agreed that the sums received would be recognised as a full discharge by the Japanese Government of its obligations.
The Japanese occupation authorities in South-East Asia issued more than one type of currency. The majority was military currency but in some cases Japanese Imperial yen was issued. The question of whether this form of currency was or remains transferable would be for the Bank of Japan to decide.
In conclusion I must say that I am afraid there is no basis for a further approach by the British Government to the Japanese on the issue of compensation and reparations for Japanese actions during the Second World War. As I said before, the 1951 Peace Treaty bound Hong Kong as well as other parts of the United Kingdom in accepting that Japan had discharged its obligations. am sorry I cannot send a more welcome reply.
I