RESTRICTED
Reference.
The
recognition of Japanese currency although its value steadily declined. In March 1946, once Allied control had become more effective, Dutch guilders were re-introduced as legal tender. Japanese guilder was for a period exchangable at a rate of one guilder for three cents of the Dutch currency but was demonetized after eight months.
5. In Hong Kong the depreciating Japanese yen was recognised for a short period before Hong Kong dollars became available. Hong Kong dollars arrived on 11 September 1945 and the Japanese yen was demonetised on 13 September.
6.
in
The information given above, and in my previous minute of 5 October, shows that there was no redemption of Japanese currency Burma, Malaya, Hong Kong, or the Philippines jand only exchange of this currency for legal tender at a very low rate in Indonesia. In Thailand, which cooperated with Japan during the war, and Laos, which stayed under Vichy control until March 1945, there seems to have been no issue of Japanese currency.
7. My main conclusions are:
1. In order to prevent the Japanese from using occupation currency in economic warfare, through despoliation, the British Government decided to demonetize it. This was carried out with little difficulty at the end of the war.
2. After the war Japan was in a desparate economic condition economically and had practically no reserves with which to back its currency. The Allies, predominantly the United States, were forced to spend vast amounts to prop up the economy. If compensation had been provided it would have been necessary for the Allies, not the Japanese, to pay.
3. I have not been able to find any reference to refunds or compensation for occupation currency provided by the Japanese Government to South-East Asian countries. If the Hong Kong Reparation Association wish to press their case, they might be asked to provide further details of these particular claims.
8. I hope this information will enable you to deal with the Association's request. I doubt whether further research would shed much more light.
Mike Com
Mike Cowin
RESTRICTED