CO129-590-22 Situation in enemy occupied Hong Kong 19-1-1943 - 20-11-1943 — Page 145

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ITALIAN

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EUROPE

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10.5.43

6.

Hon konts The Governor's Administration (Italian, Governatorate of

Hongkong has decided to put in force from the 1st June onwards the prohibition of

the circulation of Hongkong dollars. The Chief of the Financial Affairs Bureau

of the Administration of Hongkong made the following statement on the 10th instant:

At the time of the occupation of Hongkong we had to withdraw the Hongkong dollars

from circulation. But, thinking prudently of disorder in the economic structure

and of the possible threat to the life of the inhabitants that might have arisen

out of a too rapid reform of the monetary system, re have recognised, up to today,

the use of the enemy dollars of Hongkong. But the banknotes issued by the

Imperial Military Authorities have now been able to establish themselves with a

healthy development and, in addition, the economy of Hongkong, from market prices

to the wholesale purchase of all articles, is carried on by means of the banknotes

issued by the Japanese Army. On the other hand, in consequence of the British

defeat, the Hongkong dollars could not retain their value and from day to day it

declined until the Hongkong dollars lost completely the object of their circulation.

Since the 16th April last, our authoritiešs authorised the exchange of Hongkong

dollars into banknotes issued by our military authorities, without any charge being

made. And now we have decided to prohibit the use of Hongkong dollars from the

1st June onwards.

CD

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