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dollar is a sterling-backed currency (one reason why it is widely held) but there is as a formal banking matter no obligation to give value otherwise than in Hong Kong dollars for deposits or notes denominated in Hong Kong dollars: thus Hong Kong dollar notes or claims would be of little or no value outside Hong Kong in the situation envisaged, and many refugees will find that their only assets are virtually worthless. Her Majesty's Government would have to be prepared on humanitatian grounds to arrange for immediate temporary financial support for distressed persons in this position (and possibly also for those with sterling assets which could not be mobilised immediately), possibly through the posts abroad.
8. In addition to provision for releases to deal with the immediate physical needs of former Hong Kong residents with assets in the United Kingdom, it would also be necessary (though a little less urgently) to make arrangements for certain types of commercial payments to be allowed. These would include pre- zero commitments, particularly under credits opened by London banks. Releases could be allowed by the Bank of England in accordance with whatever policy was laid down.
9. Consideration would have to be given to the treatment of sterling assets belonging to China. If it was desired to impose control, either Exchange Control powers or Section 2 of the Emergency Laws could be brought into operation within a short time.
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