CO129-607-2 Military administration- accounts- etc. 3-2-1949 - 14-11-1949 — Page 30

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With Mr. E.L. Hampson's Compliments.

16/Abd/2505(F.5). OF.63/22/23

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TREASURY CHAMBERS.

23rd April, 1948.

Dear Wagstaff,

I apologise for the delay in replying to your letter of 9th March about the II.K.$4,012,319.70 taken over from the Japanese and put into circulation again in September 1945 by the British Military Administration in Hong Kong.

I agree that the sterling equivalent of this money, 1.e. $250,769-19-8d, at present held by you in a suspense account, will fall to be dealt with when we are considering the disposal of similar Japanese assets taken over in British territories. As the local currency concerned was found in the Yokohama specie bank and was presumably already part of the note issue, there can be no question of any sum being due to the Hong Kong Government. If the balance held by the War Office was in Hong Kong currency it would be appropriate for the Hong Kong Government to be asked to hold it pending a decision on the disposal of such ex- Japanese assets, but as it is in fact a sterling item held in a War Office suspense account the balance of advantage lies in leaving it there for the time being.

We are at present re-examining the whole position regarding currencies found in Japanese hands, whether in allied or neutral territories or in Japan itself. I will let you know of any developments.

I am sending copies of this letter to Whitteridge and Scott, Foreign Office, and Kelvin Stark, Colonial Office.

Yours sincerely,

O.H. Wagstaff, Esq.,

War Office,

Whitehall, S.W.1.

(Sgd.) E.L. Hampson

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