CO129-607-2 Military administration- accounts- etc. 3-2-1949 - 14-11-1949 — Page 26

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any corresponding credit being brought to account and that the Colony's settlement with the War Office in respect of cash at the date of handover was short to that extent.

5. In the circumstances it is evident that the responsibility for the notes uncovered in the Yokohama Specie Bank must rest with the Hong Kong Government, that the War Office should reverse the book transactions referred to in paragraph 2 above and that Hong Kong should put up the backing to be held in suspense pending a decision on the disposal of such ex-Japanese assets.

6.

I shall be glad therefore, if you will kindly explain matters to the Governor with a view to the Accountant General of Hong Kong accepting the charge.

7.

I am copying this letter to Hampson, Treasury and Scott, Foreign Office.

Yours sincerely,

(Sgd.) 0.H. Wagstaff.