TNAG-0056-FCO40-92-Evacuation-plan-1967 — Page 146

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ANNEX II

ACTION IN THE EVENT OF A DECISION TO BLOCK STERLING BALANCES IN THE CONTEXT OF A FORCED EVACUATION

Control over the assets of residents outside the

U.K. can be exercised either under the Exchange Control

Act 1947 or under Section 2 of the Emergency Laws

(Re-enactments and Repeals) Act 1964.

2. of the two methods, the Exchange Control Act provides

for exercise of the fullest control but has to be

reinforced in respect of the disposal of Treasury Bills

and gold by Section 2 of the Emergency Laws Act. The

Exchange Control Act can in general be used only if the

assets are those of residents outside the 8cheduled

Territory,

A necessary preliminary to its use in respect

of Hong Kong assets would be the exclusion of Hong Kong

from the 8cheduled Territories, with control exercised

under the Exchange Control Act supported by an Order under

Section 2 for Treasury Bills and gold.

in the

3. Secton 2 of the Emergency Laws can be applied to the

assets of any non-resident of the United Kingdom

irrespective of whether he is resident in the Scheduled

Territories or outside them. It is a condition that actior

to the detriment of the economic position of the United

Kdngdom is being, or is likely to be, taken by the

government or residents of the territory concerned;

circumstances envisaged this condition would be fulfilled ir

respect of residents of Hong Kong. An Order under this

Section operates only on assets which are already owned by residents of the territory concerned; that is, on payments from sterling balances and the disposal of securities, etc.; it does not operate on credits to sterling accounts or on transfer of securities to residents of the territory concert

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