FOUND THEIR ATTITUDE VERY PRAISEWORTHY. I DENIED ANY EXPERT
OWLEDGE OF THE SUBJECT BUT SAID THAT I HAD DONE A LITTLE
SEARCH AND GAINED SOME IMPRESSION OF WHAT HAPPENED IN THE
NTHS LLOWING THE END OF THE WAR. THERE HAD BEEN A LARGE ANTITY OF MILITARY YEN IN HONG KONG. THE BRITISH AUTHORITIES AT
E TIME HAD AS THEIR MAIN MONETARY PRIORITY THE RE-ESTABLISHMENT
THE HONG KONG DOLLAR. IT WAS DECIDED NOT TO GIVE VALUE TO THE LITARY YEN, MAINLY BECAUSE TO DO SO WOULD HAVE CREATED SERIOUS FLATIONARY PRESSURES WHICH WOULD HAVE BEEN VERY DAMAGING TO ERYONE IN HONG KONG, INCLUDING THOSE WHO HELD YEN. I SAID THAT THE PERIOD IMMEDIATELY FOLLOWING THE END OF THE WAR THE VALUE THE MILITARY YEN HAD INCREASED RAPIDLY (IN FACT BY ABOUT ONE OUSAND PER CENT MEASURED AGAINST GOLD OR RICE): THIS WAS
CAUSE OF THE ACTIVITIES OF SPECULATORS. THOSE HOLDING THE RRENCY TWO MONTHS AFTER THE END OF THE WAR WERE NOT NECESSARILY N FACT PROBABLY BY NO MEANS) THE PEOPLE WHO HAD ORIGINALLY BEEN RCED TO ACCEPT THE CURRENCY. THE ADMINISTRATION'S POLICY HAD EN VERY SUCCESSFUL. BEFORE THE END OF 1945 THE MILITARY YEN HAD ED A NATURAL DEATH AND WAS NO LONGER CIRCULATING IN HONG KONG, VING EFFECTIVELY BEEN REPLACED BY THE HONG KONG DOLLAR.
I THEN STATED THAT THE HONG KONG GOVERNMENT HAD NO INDEPENDENT EW ON THE MATTER: IT WAS A MATTER OF FOREIGN AFFAIRS AND THUS E DIRECT RESPONSIBILITY OF LONDON. THE BRITISH GOVERNMENT'S SITION WAS THAT THE SAN FRANCISCO PEACE TREATY OF 1951 SETTLED E QUESTIONS OF REPARATIONS, AND THE BRITISH GOVERNMENT, ALONG TH THE OTHER ALLIES, RENOUNCED ALL FURTHER CLAIMS UPON JAPAN CEPT IN RESPECT OF CERTAIN PHYSICAL DAMAGES. ON THE OTHER HAND SAID THAT I KNEW THERE WERE PRIVATE CITIZENS IN HONG KONG WHO D SUFFERED AS A RESULT OF THE JAPANESE MILITARY OCCUPATION. I ID THAT WHILE THE BRITISH/HONG KONG GOVERNMENT CONSIDERED THAT
HAD NO STANDING TO TAKE UP THE MATTER WITH THE JAPANESE VERNMENT, PRIVATE CITIZENS WERE OF COURSE FREE TO PURSUE THEIR LAIMS. IF THE JAPANESE GOVERNMENT OF ITS OWN ACCORD DECIDED TO
KE SOME RECOMPENSE TO THE INDIVIDUALS CONCERNED, THAT WOULD NO UBT BE GREATLY WELCOMED BY THOSE INVOLVED IN HONG KONG. I ASKED HETHER THEY COULD GIVE ME A SPECIFIC INDICATION OF THE SORT OF
FORMATION THEY HOPED TO FIND ON THE FILES THEY MENTIONED. WHILE ROBABLY NOT BEING ABLE TO DELIVER THE PAPERS THEMSELVES, I SAID
MIGHT BE POSSIBLE FOR US TO ANSWER SPECIFIC QUESTIONS.
I HAD IN FACT READ THE TWO FILES THEY QUOTED. BUT I DO NOT HINK WE WOULD WISH TO RELEASE THEM. THERE ARE SOME POTENTIAL REAS OF SENSITIVITY. FOR INSTANCE, IT IS EVIDENT THAT THERE WAS
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