CO129-629-14 Financial Transactions — Page 23

23

Note to accompany cheques, etc.

1.

The cheque(s)

drawn in your favour which you

I.O.U.(s)

promissory note(s)

surrendered to the Controller of Currency in Hong Kong in accordance with Government Notice No.5 of September, 1945, is/are returned to you herewith.

2.

Before presenting the cheque(s)

for payment,

promissory note(s) I.O.U.(s)

you will no doubt wish to consider whether, having regard to all the circumstances obtaining at the time when the cheque(s)

promissory note(s) I.O.U.(s) was/were drawn, the debt would not be equitably settled by pay- ment of a smaller amount than that shown on the cheque(s).

promissory note(s). I.O.U.(s).

The circumstances referred to are, of course, the artificial atmosphere of internment, in which the transaction took place, where guidance as to real values and rates of exchange was virtually unobtainable. In the latter connection it should be mentioned that it is proposed that legislation should shortly be enacted in Hong Kong governing debtor and creditor relationships throughout the period of the Japanese occupation, and that the Ordinance should include a schedule of values to be placed on Japanese military currency in that period. The Ordinance would not, however, apply to the cheques, etc., which were drawn during that period in currencies other than Japanese military currency. Nevertheless it may be of some assistance to you as affording guidance as to the valuation to be placed on Japanese military currency, but there will no doubt be factors other than the rate of exchange to be taken into account in arriving at an equitable settlement in respect of these transactions.

3. It is accordingly. hoped that you will consider the whole question from the above aspect and that you will then approach the drawer of the cheque

with the view to

promissory note 1.0,U.

DG 33030/1

1