CO129-590-4 Hong Kong and Shanhai Bank- temporary transfer of registered offices 4-2-1941 - 8-1-1942 — Page 33

54065/41

Cypher Telegram

TO: FROM:

TO HONG KONG

Governor (Sir M. Young)

Secretary of State for the Colonies.

Sent 16th December, 1941. 14.45 hrs.

PELINA CHRZY GLADA, VESH (OPT), sạn den pos

13

33

IMMEDIATE.

No. 1309 Secret.

Your telegram No. 1469.

I am not clear exactly what are powers granted on the 2nd December and circumstances which prevented the Hong Kong - Shanghai Banking Corporation proceeding under the Defence (Companies Temporary Transfer of Registered Offices) Regulations of 8th January and it is difficult at present to know precisely how to frame eny Order in Council which may be necessary to effect legal transfer of head office to London. The important thing however, in the event of Hong Kong falling into enemy hands will be that the effective control of the operations of the Bank outside Hong Kong should be in non-enemy territory and it is obviously preferable that that control should be exercised in London, Morse has therefore been authorised to assume immediately position of Acting Chief Manager and is telegraphing to all branches in following terms. Begins.

Under authorisation of Government and in accordance with Grayburn's wishes received from Governor of Hong Kong as a temporary measure London Office becomes Head Office and I have taken charge as Acting Chief Manager. Re foregoing no further instructions to be taken from Hong Kong until authorised from here. Advise your agencies and acknowledge receipt of this message by cable. Ends.

Public announcement is being made accordingly.

Morse is confident that branches will accept this arrangement but in due course Morse's actions will have to be validated either by subsequent confirmation by Grayburn as substantive Chief Manager or by legislation either in the form of a Hong Kong Ordinance or an Imperial Order in Council. Immediate legislation does not appear to be necessary.

(Sent via War Office and G.O.C. Hong Kong)