The bills are issued by Japanese banks and must pass through the hands of the Hongkong Commercial Federation.
Attempts are now being made to link up Hongkong with the Nanking area even though it lies a long distance away. This necessitates a solution of the shipping question which is the problem of East Asia. In considering the problem of incorporating Hongkong into the Greater Asiatic economic sphere, it must not be forgotten that the territory has no hinterland. When Hongkong's financial ascendancy collapsed there was literally nothing at all, save hundreds of thousands of human beings, who hitherto were only exploited. The Japanese military administration has set itself the task of procuring them once more facilities for work.
(b) The Hongkong dollar did not lose its value in the eyes of the Chinese after the colony fell. The immediate enforcement of an exchange rate of one military yen = 2 Hongkong collars (later 4 Hongkong dollars) was an entirely arbitrary act on the part of the Japanese military authorites. After the surrender there was sufficient rice and foodstuffs to keep the population well fed and healthy for at least 6 months, and yet, due to Japanese mis- management, there occurred an immediate famine and thousands were shortly dying of starvation in the streets. The Japanese method of dealing with over-population was to ship thousands of Chinese by junk to the mainland, without money or other resources, and to inform them that any attempt to return to Hongkong would be punishable by death.
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In spite of recent trade agreements between Nanking, Canton, Siam and French Indo-China, all present indications are that the economic situation in Hongkong is serious and that little business is being transacted. It should, moreover, not be overlooked that the greater part of the ex-European residential district, on the islandhas been subjected to a thorough and authorised looting and that the recently increased bombing of the colony is likely to cause a further exodus of real thy Chinese merchants who may be left, to say nothing of Chinese coolies who may be working on the docks and in the cockyards. The German admission that Hongkong has lost its only means of existence is paralleled in item 1, page 9.
2. (a) Results of the raid on Hongkong on the 29th July show that:-
(1) Blake Pier has been damaged.
(ii) The radio transmitting set in the former Naval Headquarters in the
Hongkong Club has been moved to a building outside the main entrance of the naval yard.
(iii) The naval yard received 3 direct hits.
(iv) The Taikoo Dockyard received 3 hits, one on the steel plate
store and workshop, which caused considerable damage.
On the 2nd September, fourteen bombs were dropped on the Standard Oil Company's installation at Lai Chi. One oil tanker received a direct hit and exploded.
(b) The total destruction of Blake Pier "ould cause little more than inconvenience to the Japanese. It was used largely by launches and tankers taking passengers and light luggage to ships lying in the harbour.
X
X
X