the debtor and the creditor 'to the special position of

1

banks; and to the attempt to achieve uniformity

on important points of principle, as between Hong Kong

and Malaya. It is hoped however that the stage has now

been reached when it will be possible in the next few

weeks to submit a bill to the Legislative Council.

When

the legislation has been enacted, the way will be clear

to lift the moratorium.

3. Much the same position holds in Malaya, except

that Singapore has recently raised the moratorium in

respect of pre-occupation non-interest bearing debts on

which no transactions took place during the period of

the Japanese occupation. If there is likely to be much

further delay in Hong Kong enacting the "Debtor-Creditor"

legislation referred to in paragraph 2 above, a recommendation

could be ma e to Hong Kong that they should consider lifting

the moratorium at least to the extent to which Singapore

has done so.

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