department was formed in the Hongkong & Shanghai bank building (part of the bank proper) which was operated by Japanese civilians, some of them members of the former Japanese consulate in Hongkong. This department dealt with all the affairs of so-called "third nationals" which included Swiss, Russians, Swedes, Norwegians, French, Portuguese, etc. During the first three weeks of January, all the "third nationals" were officially instructed to present themselves to this dept. in order to obtain "third national" passes with which they would be able to move freely in town. Two photographs were to be provided, one attached to the pass itself with a stamp of the Japanese Consulate over it. These passes were effective till the end of March and later on prolonged till the 15th of April. A branch of the Civil Affairs dept. was also established in Kowloon in the Peninsula Hotel. This department dealt with everything concerning third nationals such as issue of protective papers to tenants, issue of permits to take luggage across the harbour, permits to leave the colony etc. as well as the business side - e.g. reopening of offices etc. All the banks came under the Japanese Financial department. The foreign banks were allowed to open three consecutive days a month when the "third nationals and friendly Chinese" were allowed to draw specified amounts in Hongkong dollars from their personal accounts (HK$50.- in January £300.- in February and in March 150.-) The employees of the "enemy banks" i.e. Hongkong Shanghai Banking Corp., Chartered Bank of India, Australia and China, Mercantile Bank of India, National City Bank of New York, the Chase Bank, Netherlands Trading Society, Nederlandsche Indische Handelsbank, Banque Belge pour l'Etranger, were interned in a Chinese Hotel (Sun Wa hotel) in town and were brought every morning under escort to their offices. These banks were officially in the state of liquidation and their employees were allowed certain salary in exceeding HK$80.- per month. The Chinese banks were eventually instructed o reopen, but their work was restricted and under the supervision of the mentioned Japanese Finance dept.
At the time of the surrender, Hongkong and Kowloon were packed with Japanese troops. As a rough estimation the Japanese Army in Hongkong, Kowloon and the New Territories included about 60-80 thousand seasoned Japanese troops - infantry, artillery, airforce, marines and tank units. Some of the units were reportedly brought from Manchuria being stationed previously on the Russian border, others, including marines, from Canton area. After a month or so, the Japanese army in Hongkong decreased considerably - a skeleton garrison of some thousands was left and the bulk of the troops was shipped away to other war areas.
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