A 49
# GENERAL REPORT ON EXCHANGE CONTROL FOR THE YEAR 1939.
Defence (Finance) Regulations were published on 8th September, 1939, and exchange control came into effect the same day.
The regulations in Hong Kong followed closely those adopted in England with the important exception that no import and export control in relation to currency was introduced.
Nineteen banks were authorised to exchange foreign currency required for commercial, personal and contractual purposes and forty-two Chinese banks were registered as permitted to deal similarly in Chinese National currency. Lists of banks authorised or registered during 1939 appear at Appendix A.
The banks are not permitted to conduct exchange transactions falling outside the categories described above, and such transactions can only be undertaken subject to exchange control permits of which 262 were issued in 1939.
Under the exchange control legislation British subjects resident in the Colony were required to surrender certain classes of Canadian and foreign currency in their possession. During 1939, 158 persons thus surrendered currency.
In addition to the surrender of foreign currency the regulations required that securities of certain selected foreign currencies should be registered. The exchange control officer registered 204 separate holdings of securities during 1939.
The regulations also imposed restriction on the export of gold and foreign currencies and 102 permits to export were issued during 1939.
The staff of the exchange control office consisted at the end of the year of one Cadet Officer, one officer of the Senior Clerical and Accounting Staff and three officers of the Junior Clerical Service.
No prosecutions or legal proceedings against any persons took place in 1939 under the regulations and almost without exception the fullest co-operation was extended to government by British, Chinese and other neutral banks, by the public generally and by firms and individuals in carrying out the various requirements of the Defence (Finance) Regulations.
D. KELVIN STARK,
Assistant Financial Secretary (Exchange).
1st May, 1940.