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13th September.

35. On 13th September at 21.00 a proclamation was issued re-introducing the Hong Kong dollar at the rate of 1/5d sterling the following day. The Hong Kong dollar was in no way tied to the Japanese Yen which had been current until now. The supply

of actual dollar notes was small and limits were imposed on the amount that could be drawn from banking accounts and by the Services. The basic rates for day by day labour were fixed et $1 for unskilled labour, $1.50 for semi-skilled, domestic servants, etcetera, and 42.00 for chargehends. rice was fixed at 20 cents a catty.

The price of

36.

14th September.

It was half expected that there might be trouble on 14th September over the introduction of the new currency and consequent inflation of the Military Yen, but although most of the shops were closed, there were no incidents.

37.

DUKE OF YORK arrived and secured to the only buoy afloat in the harbour. She was wearing the Flag of Admiral Sir Bruce Fraser who was returning from the surrender ceremonies at Tokio,

38. A detachment of Commandos went by train, run by Naval and R.A.F. personnel to Fanling, rounded up about 800 docile Japanese troops and brought them back to Kowloon.

39.

15th September.

On 15th September I took Admiral Fraser for a tour of the Colony, the Island of Hong Kong in the forancon and Kowloon in the afternoon.

40. Some light was thrown on the continued delay in obtaining permission to sign the formal surrender by a signel from London to Chungking showing apparent misunderstanding in co-ordination. However, this was cleared up by a further signal during the night and the ceremony for which we and the Chin ese and American representatives had waited so long was fized for 16.00 the following day.

16th September.

41. The formal surrender was arranged to take place at Government House. The streets were lined with Service detachments and a combined Naval, Royal Marine, Commando and R.A.F. Guard with massed Royal Marine and Commando Pipe Band were drawn up in the grounds of Government House, The scene of

the signing was in the large and lofty entrance hall in which were assembled the senior and distinguished guests including Admiral Sir Bruce Fraser, Rear Admiral D.B. Fisher, Rear Admiral 0.5. Daniel, Major General F.V. Festing, Air Commodore G. Bartholomew (repesenting Fell. Ambassador at Chungking), Mr. H. Gimson (former Colonial Secretary), and Brigadier D.M. MacDougall.

42. The Japanese representatives, Vice Admiral Ruitero Fujita and Major General Umekichi Okada, ware escorted from Kowloon by Captain J.A.S. Eccles, R.N. and six Royal Marine Commandos. They were made to stand behind a small table a fer feet away from a larger table where I, together with the other Allled official observers, Major General Pan Hwa Kuo,

Colonel

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