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possible that, bearing in mind not

only the debtor creditc? settlement

but also the arrangements which had

been made concerning the "duress"

notes of the Hong Kong Bank, the latter

would probably be in a position, and Wohlch

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

90. While he could not give the details of

the settlement which was now under consideration,

he gave a general indication of the difficulties

Invalidate in any scheme which would simply involve all

transactions in Japanese currency. It was

all

K

clearly impracticable to invalidate transactions

which had taken place during the occupation while

there would also be difficulties in giving no value

100

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.

THE NATIONAL ARCHIVES

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Ref.:

Please note that U

CO 537/1374

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restrictions Further information is given in the enclosed Terms and Conditions of supply of National Archives' leaflet. s copy is supplied subject to the National Archives' terms and conditions and that your use of it may be subject to copyright