TNAG-2400-FCO40-3487-Political-relations-between-Hong-Kong-and-Japan-1992 — Page 51

Foreign & Commonwealth

Office

Mr Ng Yat-hing President

Hong Kong. Reparation Association 242 Fuk Wing Street, 1/FL

Kowloon

Hong Kong

London SWIA 2AH

Telephone: 071-

25 January 1991

Fes

034/1

RECEIVED IN PEGISTRY

28 JAN 1991

DESK OFFICER, INDEX

REGISTRY.

PA

Action Taken

Dear Mr Ng,

2811

I have been asked to reply to your letter to Lord Caithness of 13 September 1990 about reparations for currency issued during the Japanese occupation of Hong Kong in the Second World War. I apologise for not replying earlier but this matter has required considerable research.

I am afraid that there is no basis for the British Government to approach the Japanese Government on this question. While the British Government greatly sympathises with the hardship and losses suffered by Hong Kong citizens during the Japanese occupation, the Treaty of Peace with Japan, which was signed by the United Kingdom and other Allied Powers in San Francisco in 1951, made provision for the Allied States to dispose of Japanese assets under their jurisdiction by way of war reparations. The British Government and the other Allied Powers agreed that the sums received would be recognised as a full discharge by the Japanese Government of its obligations. As you will know, the United Kingdom's ratification of the 1951 Treaty was binding on Hong Kong.

The specific question of Japanese currency in circulation during the war was considered before the ending of hostilities. It was decided then that no value should be given to Japanese currency or to any local currencies introduced under Japanese occupation. This policy was accepted and enforced when hostilities ceased. The Japanese yen was demonetised on 13 September 1945, two days after Hong Kong dollars became available. Although in your letter you refer to compensation agreements in other South East Asian countries, we understand that no such agreements were enacted.

/It