CO537-(1262-1649) — Page 144

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Ref.:

CO 537/1369

THE NATIONAL ARCHIVES

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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

1. No.: Whitehall 1234

Your Reference...........

Treasury Reference OF. 54/10/

00 108

TREASURY CHAMBERS

GREAT GEORGE STREET,

LONDON, S.W.1.

6th April, 1946.

My dear Caine,

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Thank you for your letter of the rd and the enclosed draft Ordinance for the validation of the Hong Kong Duress notes.

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I can only think of two comments, which I have mentioned to you on the telephone. One is a doubt whether we can be sure that "notes put into circulation between 1.1.42 and 16.8.45" were the full H. K. 119,300,000. You agreed that this figure would have to be reduced by the amount of any unissued duress notes that may have been recovered.

The other point is how any duress notes that may have been used, via the Japanese "pool", to pay off liabilities of another bank would be treated under the draft Ordinance.

Unless it is certain that these would rank as a "legal liability of the

H. K. and S. B." by reason of their clearing debt(s) to other bank(s) in question, I suggest that it would be advisable to add "or may be deemed to have been used" after the word "used" in line 7 of paragraph 3(2)(b), as in paragraph 5(2) of your official letter to Morse of 28th February.

I am sending a copy of this to Fisher.

Yours sincerely,

S. Caine, Esq., C.M.G.,

Colonial Office.

eme

Ref.:

CO 537/1369

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 copynght