CO537-(1262-1649) — Page 306

00091

Wt. 49614/485 3/48 50m. S. & S. Ltd.

C. O.

2018

Mr Emanuel

MJ.B.Williams.......

Mr.

Mr..

$21.8

Mayle 24/2 Came 23/8 atonce

DRAFT.

P

TELEGRAM

(Сурния

GOVERNOR,

HONG KONG.

(.22!

FURTHER ACTION.

Comer for

mi HIJ Thoma W CE col

yes

15488/17/46

Reiphered (orp) & sent

1845th 23/8/4/

to od 28h.

Permi. U.S. of S.

Parly. U.S. of S.

Secretary of State.

SECRET

..234

NO..

BROEIVEL 28 AUG 1946

LOFFICE

Your telegram No.834.

Debtor credit or relationships.

2-44

90

My telegram No.637 may, repeat may, be

discussed with Morse and I should be grateful

if you would do so.

2. As regards scale of revaluation in

respect of capital payments para. 7 of my

telegram No.637 refers.

I am not sure what

is meant by your suggestion that scale should

be based on purely nominal value of yen.

Underlying intention of my proposals is that

scale should be the fairest to both sides in

relation to particular category of transactic

mort affected. If it can be assumed that capital

repayments were made to take advantage of the

special circumstances this would justify

a scale-less favourable to Japanese currency

than the scale applicable to outstanding

debts.

Appropriate scales must be essentiall

a matter for local decision but I shall be

glad to know what scales you would be likely

to suggest if revaluation scheme is adopted.

3 Should be grateful also for explanation

of figure of 20 million dollars. Assume this

is after revaluation and should be glad to know relevant scale and also the apportionment

1

Ref.:

CO 537/1374

THE NATIONAL ARCHIVES

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