CO129-591-8 Policy directives 10-3-1944 - 17-8-1944 — Page 73

SECRET

54132

HONG KONG

CIVIL AFFAIRS POLICY DIRECTIVES

Revised Draft

22/5/44

BANKING POLICY

24

72

I.

It will be the policy to re-establish as legal tender

in Hong Kong, bank notes and government currency notes and coin

of the same character as were in circulation before the enemy

occupation, and the three note-issuing banks, The Chartered Bank

of India, Australia and China; The Hongkong and hanghai Banking

Corporation, and the Mercantile Bank of India, Limited, have

placed orders with their printers for supplies of Hongkong currency

notes and government notes of small denomination are also on order.

II.

In view of this policy it will be necessary for arrangements

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

banks.

III.

It will be necessary to declare a moratorium on banking

As soon as practicable

but before the general removal of the moratorium, permission should

be granted for such limited transactions as may be considered

essential.

business in the early days of re-occupation.

IV.

possible.

V.

Allied banks should be permitted to re-open as soon as

With regard to the local non-enemy banks which have been

operating during the period of enemy occupation, an investigation

should be made into their stability and

extent to which they

co-operated with the enemy, and a decision made as to whether they

should be permitted to continue business.

VI.

Enemy banks should be closed down with a view to their

liquidation in due course.

VII.

With regard to currency introduced by the Japanese, see

the directive on Currency.