CO129-591-8 Policy directives 10-3-1944 - 17-8-1944 — Page 168

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1.

The pre-occupation Hong Kong currency will be the legal

tender on re-entry. With this in view the three note-issuing

Banks, the Chartered Bank of India, Australia and China, the

Hong Kong and Shanghai Banking Corporation and the Mercantile

Bank of India Limited have placed orders with their printers

for supplies of Hong Kong currency notes. Government notes

of small denomination are also on order.

2.

In view of the above it will be necessary for arrangements

to be made for the immediate re-opening of the three note-issuing

Banks.

3•

With regard to the local non-enemy Banks which have been operating during the occupation an investigation into their

stability and the extent to which they co-operated with the

enemy must be made, and a decision reached, as to whether they

may be permitted to continue business.

4. Enemy Banks will automatically be closed down and

liquidated in due course.

5.

The probability is that Allied Banks such as the National

City Bank of New York, the Nederlandsche Handelmaatschappij, the

Qý den a Central Bank of China etc) will wish to re-open at the same time

as the British note-issuing Banks. A decision on this point will

be sought.

8. The steps to be taken with regard to currency introduced

by the Japanese is also a matter of high policy. .

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