I
53560/31
Great smith street.
8.W.1.
Is Bovember, 1951.
Batt has passed to me your letter of the 19th October enclosing a r port about the opening of # Japanese bank in Hong Kong. e had heard agathing of this from the Onit d Kingcon Trale Bemary in Hong Kong and we have no a ecial comments on the matter, since it is an inevitable ourollary of the Japanese Peace Treaty.
If the Japanese propose to opɛn a new bank it will be necessary for thus to aply for a banking license under the Banking Oraizanoe of 1948 (wnies ominence exponors the Financial Scenetary to refuse a license without regeon given). We think it likely that a license would have to be refused until after the ratili stim of the Pesce Treaty, unless the Sterling Payments aɛro oant already provides for reciprocal banking facilities. It would, however, be possible for the Japɔnese të opɛn a bank, without obtaining a liz nse, by buying an existing 0 inese bank, or by appointing an ag nt or correspondent to an existing bank. Do you want us to take this matter up with Hong Kong officially?
:
her thing p. naps worth mentioning is that the Japanese would go well to keep their staff as small as toe ible until they see how far the
Long Chinese hv forgotten Japanese brutalities
Hon
A.J.Phelps, 24.
/in