CO537-(1262-1649) — Page 232

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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' 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

000 17

Mr. Caine

I think you will be interested to read

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Mr. Emanuel's useful minute of 4th January commenting on the correspondence with the Hong Kong and Shanghai Bank regarding the proposed debtor creditor legislation forwarded by Hong Kong at No.38.

The bank states that they remain unalterably opposed to the principles of the proposed legislation, their attitude being concisely stated in Mr. Morse's letter to Mr. Follows of 12th November (enclosure A. to 38.).

I think the answer to Mr. Morse's contention has already been given in your letter to him at (33) on this file, namely that he wholly ignores the fact that the proposed legislation will not enable debtors who paid off their debts in yen to receive credit for their repayments at the full value out according to a scale which will make ample allowance for the depreciation of the yen.

Although I feel that our proposals now represent in principle as just a solution to all parties as could be contrived and that they would not have been Buostantially different nad the bank argued their case in a different way, I nevertheless feel that the Hong Hong and Shanghai Bank have weakened rather than strengthened their case by relying as much as they have done on the very narrow legalistic approach of their legal adviser, Mr. Jones.

Mr. Emanuel's minute of 4th January explains that no further action is required on this file so I am therefore sending to you for information only.

7.13.W.

25.1.47.

Ритя

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Ref.:

CO 537/1374

THE NATIONAL ARCHIVES

2

Ins

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