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CO 537/1374

THE NATIONAL ARCHIVES

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

I

COPY

00099

가

Note of a Meeting held on the 11th of July, 1946.

Present:

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21

98

Mr. Caine Mr. Emanuel

Mr. Hayden

Colonial Office

London Office, National City Bank

of New York.

He

Mr. Hayden said he had been asked by his head office to enquire into the position of the Hong kong balances of his Bank with the Hong Kong and Shanghai Banking Corporation. understood that there had been some discussions in New York with Mr. Morse and that the balances were frozen pending settlement of the general "debtor creditor" question.

The view

of his Bank was that they were entitled to full reinstatement of the balances which they were anxious to see made as soon as possible.

Mr. Caine confirmed that the release of pre-war bank balances with the Hong Kong and Shanghai Banking Corporation awaited the general settlement of the debtor creditor question. He thought, however, that while no commitment could be entered into, the National City Bank need probably not have cause for alarm regarding its balances with the Hong Kong Bank since it seemed quite possible that, bearing in mind not only the debtor creditor settlement but also the arrangements which had been made concerning the "duress" notes of the Hong hong Bank, the latter would probably be in a position, and would probably want to repay the deposits with it of other banks. Mr. Caine added that he hoped a decision on the debtor creditor question would be reached within a month or so. While he could not give the details of the settlement which was now under consideration, he gave a general indication of the difficulties in any scheme which would simply invalidate all transactions in Japanese currency. It was clearly impracticable to invalidate all transactions which had taken place during the occupation while there would also be difficulties in giving no value at all to bona fide payments which had been made in respect of pre-occupation contracts. Such a policy would lead to inequity and hardship which Government could not permit.

Mr. Hayden expressed himself satisfied and said that he would inform New York that the matter was still under consideration and that it was hoped that a definite conclusion would be reached within a month or so.

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CO 537/1374

Ref.: 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