It was not until 1927 that watermarks have been incorporated into the notes to prevent copying. The advent of security printing of the notes with a metallic strip, first introduced in the early 1970s has made counterfeiting much more-difficult, rendering it possible for simpler designs to be used on the notes. The advanced printing technique together with the modern colour separation by computer of the presentday scientific developments have helped with the production of the current notes in vivid multi-colours of special effects. An example is shown on the 1977 $1,000 note of the Hong Kong & Shanghai Banking Corporation, the relief effect of Chinese characters on the obverse is an attractive technique used on an interesting three- layer effect achieved in the background by means of spacing of interlocking lines. Designs of traditional Chinese fabulous animals have also been used in a complete series of denominations in the banknotes of the Chartered Bank first issued in 1979.
GOVERNMENT NOTES
The first paper money ever issued by the Government of Hong Kong is the one dollar note of legal tender bearing the portrait of King George V with the printed signature of Edwin Taylor, Financial Secretary of Hong Kong from 1931 to 1937. It was issued in accordance with the One-Dollar Currency Notes Ordinance 1935 to replace the silver dollars which had been surrendered under the provision of the 1935 Currency Ordinance, and which were included in the newly created One-Dollar Note Security Fund administered by the Treasury to serve as the surety for the issues. Its issues were undated prior to 1949 and discontinued in 1960, being taken over by the dollar regal coins.
The one cent note is the first of the subsidiary paper currency to the dollar issued by the Government. Its issues were effective on 30th May 1941 under the 1941 One-Cent Currency Notes Ordinance with the establishment of the One-Cent Note Security Fund as the backing. The enactment on 17th October 1941 of the Subsidiary Currency Note Ordinance 1941 allowed the Government to issue five and ten cents notes with a backing of the newly created Subsidiary Note Security Fund. All these notes were undated for issue but bear the printed signatures of the respective Financial Secretaries authorizing the issues.
As from 1st September 1959, all Government notes have been replaced by regal coin issues with the exception of the one cent note which is still in circulation up to the present. There had been a special issue of the five and ten cent notes in early 1965 for use in the Chinese New Year due to the late arrival of the coinage supply.
Shortly after the Japanese attack had been launched in December
1941, the Hong Kong Government issued the emergency one dollar notes to meet the demand of an increasing numbers of hawkers arising at the closure for business of local shops and companies.2 These dollar notes were actually overprinted five dollar notes dated 1941 of the Bank of China which were printed in Hong Kong and were ready for shipment. They were consequently in circulation for about a fortnight as Hong Kong surrendered on Christmas Day 1941.
After the Liberation in August 1945, the British Military Administration in Hong Kong had ordered the overprinting of the unissued notes of Japanese 1000 Military Yen, Central Reserve Bank of China 1000 and 5000 Yen as Hong Kong one, five and ten dollars respectively for general circulation, and had made provision in the Currency Proclamation of 13th September 1945 for their forthcoming issues as legal tender of Hong Kong. However, the supply of the genuine Hong Kong currency notes had arrived in the course of the overprinting and the overprinted notes were therefore never issued. They were subsequently destroyed in 1946.
JAPANESE MILITARY NOTES
Having taken posession of Hong Kong on 25th December, 1941, the Japanese Military Government issued Military Notes for general circulation and declared the Military Yen as the currency unit. The rate of currency conversion was first fixed at one Military Yen to two Hong Kong dollars from 25th December, 1941 to 23rd July, 1942 and then at one Military Yen to four Hong Kong dollars from 24th July 1942 to 31st May, 1943. As from 1st June, 1943, Japanese Military notes of the Yen currency became the only means of exchange for daily circulation/locally until the Liberation of Hong Kong on 30th August,
1945-
There is a variety of uncirculated specimens of Chinese banknotes overstamped as "Temporary Currency of Hong Kong Government" issued by the Commander of the South China Expeditionary Force of Great Japan extant today. They are believed to have been made available by the Japanese Military Government for general circulation in Hong Kong but had for reasons unknown never been issued. However, there has been no evidence available as yet to substantiate the conjecture.