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(v) Section 9. It is suggested that in Section 9 Sub- section (3) should be omitted, that sub-section (4) should be renumbered (3) and should read:-

(3) Notwithstanding that a mortgage being a security revived in accordance with Sub-section (1) of this section has ceased to be registered in accordance with Order No.L.2 Land 1931, and notwithstanding that the land has been transferred to a third party, from the date of the coming into force of this Ordinance such mortgage shall be deemed to be and shall be registered as if the said mortgage had not been cancelled"; Sub-section (5) should be renumbered Sub-section (4) and should read (1) The Court when making an order under Sub-section (2) of this section on being satisfied that the security will be replaced by an equivalent security may direct that the provision of Sub-section (3) shall cease to apply in respect of the land which formed the original security and on the production of that order to the Superintendent the mortgage shall be removed from the register".

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Hong Kong

(i) If it is desired to include the definition of "duress or coercion it should be limited to "duress" since English Contract Law is followed in Hong Kong.

(ii) Reference to the Malayan Union throughout the draft should be replaced by the Colony of Hong Kong or Hong Kong.

(iii) Under Section 2, the appropriate dates of "occupation period" are left for insertion.

(iv) In Section 2 for the definition of "Malayan currency" substitute "Hong Kong currency".

(v) Section 3 (1) and Section 4 must have regard to the fact that the Japanese issued a military yen and not a dollar currency. It is therefore necessary to add to the words "to the face value of such payment" a phrase indicating the exchange rate applying between dollar and yen. Generally speaking, it is assumed that where a debt expressed in dollars was discharged by a payment in yen, the payment was calculated by reference to the official rate. In some cases, however, it is possible that the parties agreed to calculate the number of yen necessary by reference to another rate (e.g. less favourable to the Japanese yen). It is suggested therefore that at the end of Section 3 (1) and Section 4, the words "at the official rate prescribed by the occupying power or, where another rate was at the time of payment agreed by the parties concerned, at that rate" should be added.

(vi) Section 9. It is understood that there have been no entries by the Japanese in the Hong Kong land register, so that all mortgagees have their landed security intact and still in law burdened with the mortgages. If this is the case Section 9 can be limited to Sub-sections (1) and (2).

PART III

Draft Ordinance for the Malayan Union

1. This Ordinance may be cited as the Debtor and Creditor (Occupation Period) Ordinance, 1946, and shall come into force on such date as the Governor may by notification in the Gazette appoint.

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THE NATIONAL ARCHIVES

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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