CO129-595-5 Validity of registration of land during Japanese occupation 1-1-1945 - 31-12-1946 — Page 30

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(3) Payments against debts incurred after the commencement of the Japanese occupation should be wholly validated. The general conception in these cases is that least disturbance will be caused by validating all transactions incurred and closed during the occupation.

(4) Debts incurred during occupation period and still outstanding to be regarded as due in British currency subject to adjustment of amount in accordance with rates of conversion to be fixed by rules as above.

(5) Liability for arrears of interest on mortgages, bank deposits and overdrafts, uncollected bills, promissory notes and other obligations bearing interest to stand subject to the Courts being given power to remit liability in cases of hardship; 12 possible, guidance to be given to the Courts as to bases for assessing hardship, e.g• whether the person from whom interest is due was in enjoyment of property acquired as a result of transactions out of which the interest charge arose.

(6) Banks, including those "liquidated" by the Japanese to be treated on identical basis with other debtors and creditors. Payments to and from the banks would therefore be validated subject to the general conditions indicated above, pre-occupation overdrafts and deposits being treated as capital sums. Repayments of pre-occupation overdrafts not demanded by a bank itself would be revalued as in Four (2) (b) above. We should be glad of your advice as to treatment of repayments of deposits by banks or by liquidator. Can it properly be presumed that all such repayments were made at voluntary request of depositor and should not therefore be subject to revaluation.

Special position arising between certain of the Hong Kong banks owing to the pooling of their cash assets will be discussed further with the banks.

Five. Grateful for early comments on above.

Copies sent to:-

Treasury

#1

Bank of England

Treasury Solicitors

Burma Office

Trading With the Enemy Dept.

Mr. N. Young.

Mr. H.H. Thomas. Mr. J. Fisher. Mr. R.W. Speed. Mr. A. More.

Mr. Mantle.

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