Hong Kong Plaintiffs Lose Suit On Wartime Scrip
           
          June 17, 1999

          Asahi Shimbun

          The Tokyo District Court today rejected a compensation request from 17
          Hong Kong residents who were given now-worthless military scrip by
          imperial Japan during World War II.

          The plaintiffs contended they suffered severe financial losses when they
          were forced to hand over their Hong Kong dollars for military scrip
          called gunpyo.

          Hong Kong, then a British colony, was under occupation of the Imperial
          Japanese Army from December 1941 through August 1945.

          The plaintiffs, led by Ng Yat Hing, 63, had sought a total of 760
          million yen in compensation.

          Presiding Judge Seiichiro Nishioka said, "All military scrip (issued by
          Japan) became worthless after the war.  Whether the plaintiffs should be
          compensated is not a matter to be decided by the courts but one to be
          decided by the Diet."

          However, Nishioka acknowledged that the exchange of Hong Kong dollars
          with gunpyo was compulsory under Japanese occupation.

          "The plaintiffs are war victims and their financial losses are damages
          resulting from the war."

          The plaintiffs said the Japanese army issued gunpyo in vast quantities
          and murdered residents who would not obey.  Japanese forces prohibited
          the use of Hong Kong dollars in May 1943.

          A month after the war ended, the Finance Ministry in Tokyo declared that
          military scrip was worthless.

          In today's ruling, the presiding judge noted that the declaration was
          based on a memorandum issued by the Supreme Commander of the Allied
          Powers.

          He rejected the plaintiffs' assertion that Japan was duty-bound to honor
          the scrip because the reverse side of the notes said they were exchanged
          at the same value as bank notes issued by the Bank of Japan.

          "The statement is also invalid," Nishioka said.

          At the end of the war, the plaintiffs had accumulated military scrip
          worth 517 million yen in face value.  They formed a group to demand
          compensation in 1968 and have been lobbying the Japanese government ever
          since.

          In August 1993, they filed a suit with the Tokyo District Court asking
          the government to exchange their military scrip with Japanese bank notes
          at current values.  They also sought 10 million yen in consolation money
          per plaintiff.

          In November 1980, the district court rejected a similar compensation
          request from a group of Taiwanese residents.
           

           
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