CO537-(1262-1649) — Page 275

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Dover House,

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15th November, 1946.

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Ref.:

THE NATIONAL ARCHIVES

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 copyrigh

My dear Morse,

Many thanks for your letter of the 29th October enclosing a copy of a letter to Follows about paying off of overdrafts. I can well believe that the particular case you quote is typical of many and I entirely agree that the debtor in this case could not argue either that he had acted under duress or that the military yen which he paid must be taken at their full face value at the time. On the other hand, I hope I am not being obstin.te in maintaining the point of view that the payment did involve him in some cost or loss of value since he had to ispose of shares in order to make it. On the figuras quoted, it may well be that the right answer is that his payments should be taken to be equivalent to one hundredth of the face value, and on our scheme that might be the appropriate ratio scheduled by the Covernor.

We have not, however, yet come to a final decision, although I hope we shall do very soon, and this practical example will certainly be taken into account in reaching that conclusion.

I hear from a number of sources that, although things are not entirely happy with you, any more than in any other part of the world, Hong Kong really is making progress, and general business is pretty brisk, indeed almost feverishly briak in some respects.

A. MORSE, ESQ., C.B.E.

(bopy sent to Mr. Follows)

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