SECRET
54132
HONG KONG
CIVIL AFFAIRS POLICY DIRECTIVES
Revised Draft
22/5/44
BANKING POLICY
24
72
I.
It will be the policy to re-establish as legal tender
in Hong Kong, bank notes and government currency notes and coin
of the same character as were in circulation before the enemy
occupation, and the three note-issuing banks, The Chartered Bank
of India, Australia and China; The Hongkong and hanghai Banking
Corporation, and the Mercantile Bank of India, Limited, have
placed orders with their printers for supplies of Hongkong currency
notes and government notes of small denomination are also on order.
II.
In view of this policy it will be necessary for arrangements
to be made for the immediate re-opening of the three note-issuing
banks.
III.
It will be necessary to declare a moratorium on banking
As soon as practicable
but before the general removal of the moratorium, permission should
be granted for such limited transactions as may be considered
essential.
business in the early days of re-occupation.
IV.
possible.
V.
Allied banks should be permitted to re-open as soon as
With regard to the local non-enemy banks which have been
operating during the period of enemy occupation, an investigation
should be made into their stability and
extent to which they
co-operated with the enemy, and a decision made as to whether they
should be permitted to continue business.
VI.
Enemy banks should be closed down with a view to their
liquidation in due course.
VII.
With regard to currency introduced by the Japanese, see
the directive on Currency.