CO537-(1262-1649) — Page 196

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TELEGRAPHIC ADDRESS. BONIFADE, STOCK, LONDON.

ALL LETTERS TO DE ANDREUÛto

MUTTANU ↑ MADE PAYABLE TO

*The HomecomŠ AND SHANGHAI BAMING CORPORATION"

NOT TO INDIVIDUALS.

00 160

The Hongkong

and Shanghai Banking Corporation.

INCORPORATED IN THE COLONY OF HONGKONS

THE LIABILITY or MensËRS 10 LIMITED TO THE EXTENT AND IN MANKER PRESONIDED BY ORDINANCE No. of 1920 OF THE COLONY,

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157

3. Gracechurch Sheet London: 8.0.3.

February 6th, 1946. W.

My dear Caine,

I have had a verbal report of the substance of the

di scussion which you had yesterday afternoon with Reid, Muriel

and Jones on the subject of the unlawfully issued notes. You can rest assured that as soon as I have had a note of the suggestion which you put forward for a solution of the problem, the matter will receive my immediate and careful consideration.

I gathered, however, that in the course of the discussion you intimated that Government were either considering or had certain views on the question of the use by the Japanese

of occupation currency in the British liberated territories and were inclined to deal with the problem as a part of the whole question of all debtor-creditor relationships.

If Government has any intention of introducing legislation with a view to varying retrospectively the legal relations between the banks and their customers, then the whole question of the consequent loss to the banks becomes a very important factor in the consideration of the possible commitments of the bank in the matter of the unlawfully issued Notes. The two matters are very closely interlocked and I do not see how my Board can form any proper judgment on your suggestion for sharing the losses in respect of the unlawfully issued Notes until they know where the bank stands in the other matter in

which all the banks have vital interest and concern.

I trust, however, that you will be able to give

an early opportunity to allow the banks to express their views

on the matter of the occupa tion currency. On the immediate

-1-

question

cms

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