CO129-609-4 Future policy- draft proclamation for moratorium on unsettled debts 24-8-1945 - 22-2-1947 — Page 14

No.98.

GOVERNMENT HOUSE,

4

HONGKONG.

Sir,

RECEIVED 30 SEP 1946

O. O. REGY

16th September, 1946.

I have the honour to transmit for your information

an extract from the records of a meeting of the Hong Kong

Legislative Council held on the 27th August, 1946. This

extract relates to a Motion proposed by the Hon. Mr. M.K. Lo,

C.B.E., an unofficial member, and unanimously adopted by the

Council.

2.

It will be noted that the unofficial members of the

Council expressed the hope that the decision on outstanding

matters concerning the debtor-creditor relationships will,

when finally arrived at, be put into effect by legislation

in Hong Kong or else, if it is effected by Order-in-Council,

that the Legislative Council will first be given a full

opportunity of expressing its views.

3.

It will be observed from the comments made by the Hon.

Mr. M.K. Lo, C.B.E., that Unofficial Members are becoming

extremely restive about the maintenance of the restrictions

imposed by the Moratorium Proclamation. While the difficulties

are appreciated at least in part, public opinion is hardening

against the Government now that the Colony has been liberated

for over a year. As it may still be some considerable time

before final agreement is reached and the necessary legislation

introduced, I am exploring the possibility of partially

removing the ban on the transfer of shares and of granting

further exemption in the case of dealings in land.

Acting on

these lines would meet some of the main complaints of the

public.

Clearly it will have to be a condition precedent to

14