FO371-46252 — Page 99

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II.

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(v)

(vi)

(vii)

any particulars of the figures on which they worked. Where the 203 excooded $5000 the excess was paid by cho quos on the Yokohane Specie Bank or on the Bank of Taiwan for the opening of a new account. So far as is known payments out in 1942 wore mado in Hongkong Dollars.

Repayment of Overdrafts and Loans. From August 1942 the liquidator called in overdrafts and loans and repayment was made to an uncertain extent but probably not more than between 15% and 30% during 1943, but it is not known in what currency. It is to be noted that overdrafts and loans woro rocalled, and that, in tho case of at least some of the banks, such payments as word mado woro received by the liquidators and not by any authorised agent or sorvant of the banks. It is not known in what currency payment was made.

Release of Securitios. The liquidators scized all the securities in the custody of the banks, and are believed to have released on payment to them some of the securitics for overdrafts and loans. There are no details availablo as to what currency was used for the payment of dobts, or as to what extent payment wes mado, or as to what securities were released. The Japanesc kopt control in their own hands.

Safc Deposits. All property in safe deposits was taken by the Japanese liquidators into their own control. Any gold or foreign currency notes were appropriated against payment to the owners on an arbitrary exchange basis but whether in lawful Hongkong currency or other- wiso is not known. In many casos coins and other property were stolen by the staff of the liquidators, so that the receipts given by the depositors for what they actually recoivod do not tally with the deposit reccipts originally givon by the banks.

(viii) Occupation Currency. At the outset, the Japanese issuod

a special occupation currency in the form of Japanesc Military Yon which wore apparently good only for Kwantung and Hongkong, and had no known coverage or exchange rolation with Japanese Government Yon or any other basis of convertibility or link with external money. An Cxchange rate between the Military Yen and the Hongkong Dollar was fixed by the Japanese Authorities, at first at par, then at $2 to Ten 1, and later at $4 to Yon 1.

Hongkong currency notes of $500, $100 and $50 dononinations wore declared not to bc legal tender, but notcs of lowor donomination were permitted at least for a period but word gradually ousted by the occupation currency.

It is not definitely known whether the prc-occupation Hongkong currency was at any timo declared illegal.

Logal Effects of Japanoso Acts.

The banks liquidated wore private institutions. The seizure of their funds was plainly an act of confiscation of private property in violation of the cxpress terms of the Hague Regulations.

The use of occupation currency with a fictitious valuation enablod the Japancsc to acquire supplics of lawful Hongkong currency and goods without cxpensc on their part. Such moasures

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