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Ref.:
CO 537/1374
THE NATIONAL ARCHIVES
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00053
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Ref.
CO 537/1374
THE NATIONAL ARCHIVES
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restrictions. Further information is given in the enclosed Terms and Conditions of supply of National Archives'
Please note that this copy is supplied subject to the National Archives' terms and conditions and that your use of it may be subject to copyright
leaflet.
(0)
The words in pencil on the top of page 7 after the words "on his behalf" serve to emphasize the extraordinary conception of law which it is intended to adopt that "payments made.
to a liquidator in in purported discharge of a debt due... shall be a válid discharge".
•
•
that is, that payments made to a third
party, who is not authorized to receive
payments,, in purported discharge of a
debt due
shall be a valid discharge. The addition of the words "in purported discharge etc" does not make the antithesis
any better. (d) Under 3 (1)
Payment in occupation currency to the liqui- dator is taken as a discharge of a debt to the extent of the face value of such payment, and under 3 (2)b as a discharge to the extent of
a revaluation.
A pre-
Some provision should be made to
govern the rate of exchange at which a debt in foreign currency should be converted into Hong Kong currency. The rate of exchange to be applied in effecting such conversion normally is that prevailing commercially on the date at which the debt became due and payable. occupation debt may have become due and payable
during the occupation period when there was no rate of exchange legally recognised as prevail- ing between the two currencies. It is submitted that in the case of pre-war debts in foreign currency becoming due and payable in Hong Kong during the occupation period the rate of exchange for the conversion of the foreign currency to Hong Kong currency should be that prevailing on December 6, 1941.
If it were otherwise, pre-war debts incurred in Bay, C.N.C.$ or Ticlâa might at the rate of ex- change prevailing after the war represent an infinitesimal fraction of the original debt in