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027161 MDHOAN 7201
020CT19.
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FM FCO
TO DESKBY 19010OZ HONG KONG
TELNO 1729
OF 18131OZ SEPTEMBER 90
INFO IMMEDIATE BTC HONG KONG, TOKYO
FOR PAUL (VISITING) FROM MARSDEN, HKD
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YOUR TELNO 2802 (NOT TO ALL): LETTER TO LORD CAITHNESS FROM THE REPARATION ASSOCIATION HK
1. WE ARE NOT YET IN A POSITION TO GIVE A SUBSTANTIVE REPLY TO THE LETTER FROM THE REPARATION ASSOCIATION. IF ASKED ABOUT THIS MATTER, WE SUGGEST THAT LORD CAITHNESS SHOULD THEREFORE SIMPLY SAY THAT IT IS STILL UNDER CONSIDERATION IN LONDON.
2.
FOR YOUR BACKGROUND INFORMATION ONLY, WE HAVE CONSULTED THE LEGAL ADVISERS AND THE POSITION IS THAT:
(A) THE 1951 PEACE TREATY SIGNED IN SAN FRANCISCO BETWEEN JAPAN AND THE ALLIED POWERS APPEARS TO HAVE WAIVED ALL CLAIMS AGAINST THE JAPANESE IN RESPECT OF JAPANESE CURRENCY ISSUED
QUOTE IN THE COURSE OF THE PROSECUTION OF THE WAR UNQUOTE:
(B) THE UK RATIFICATION OF THE 1951 TREATY BOUND HONG KONG
AS WELL AS THE UK: AND
(C) ALTHOUGH JAPAN DID AGREE UNDER ARTICLES 14 AND 16 OF THE TREATY TO PAY REPARATIONS TO THE ALLIED POWERS FOR QUOTE DAMAGE AND SUFFERING CAUSED BY IT DURING THE WAR UNQUOTE, INCLUDING ABOUT FOUR AND HALF MILLION POUNDS TO THE UK FOR DISTRIBUTION TO FORMER BRITISH CAPTIVES OF THE JAPANESE, INCLUDING FORMER CIVILIAN INTERNEES, NOT ALL CIVILIAN INTERNEES OF BRITISH NATIONALITY QUALIFIED FOR FINANCIAL HELP FROM THESE FUNDS: ONLY THOSE WHO HAD BEEN RESIDENT IN THE UK BEFORE INTERNMENT AND WHO HAD RETURNED TO THE UK AFTER RELEASE WERE
ELIGIBLE.
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IT WOULD THEREFORE APPEAR THAT THE JAPANESE GOVERNMENT HAVE NO OBLIGATION UNDER THE 1951 TREATY TO HONOUR THE WARTIME CURRENCY HELD BY HONG KONG RESIDENTS AND THAT THE LATTER WOULD ALSO BE UNABLE TO MAKE A CLAIM ON THE SMALL SUM OF REPARATIONS REMAINING UNDISTRIBUTED. IT REMAINS FOR CONSIDERATION, HOWEVER,
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