cms
Ref.:
CO 537/1374
THE NATIONAL ARCHIVES
2
Ind
restrictions Further information is given in the enclosed Terms and Conditions of supply of National Archives' leaflet. 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
00097
cms
Ref.:
CO 537/1374
restrictions Further information is given in the enclosed 'Terms and Conditions of supply of National Archives leaflet. 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
Copy on /18. you/18.
My dear Cockburn,
21a
Colonial Office,
Dover House,
Whitehall, 3.7.1.
16th August, 1946.
96
Thank you for your letter of the 14th August. Ze also very much regret the delay in arriving at a solution of the debtor-credi tor position in Malaya and Hong Kong. It has beau due to a numbʊr of points having been raised by the local governments, on which there has boen further correspondence. We have not yat come to a final agreement with them, but our own proposals have not been subotantially altered, except with regard to the treatment of local banka,
In order to deal with the position of those banks which, as you realised, would have been very difficult under our original proposals, what we have now suggested is that outstanding net deposits in cccupation currency should be treated so valueless, The liability of the banks in respect of deposita would then be the pro-cocupation deposit, plus any deposit and less my withdrawal proved to have been made in genuine currency and less my excess of with- árævale over deposits in occupation currency. Thus in no case would the depositor be entitled to more than his pre-cocupation deposit unless, of course, he could prove that he had deposited genuine and not occupation currency, which I imagine to be a very unlikely evonte It is possible that under this formula some individual banks might actually make a profit in which event I think we should need to reserve the right to call upon them to hand over their profit to government or to any gonoral fund which may be act up to deal with war damage compensation.
/These
W.R. COCKERN,