British Military Administration of Burma Banknotes

Delve into the British Military Administration of Burma Overprint Banknotes, a critical chapter in Burma's post-WWII economic history. As British forces re-established control, the need for a stable and reliable currency became paramount. Following the challenging period of the Ba Maw 100 Kyat emergency issue, these British Military Administration of Burma banknotes emerged. This article will explore these 1, 5, 10 & 100 Rupees overprinted Indian currency notes, discussing their historical context and unique features as they stabilized the Burmese economy and restored public confidence.

Proclamation No. 1 of 1944

Lord Louis Mountbatten, Supreme Allied Commander, South East Asia, issued Proclamation No. 1 of 1944 dated 1 January 1944 as follows:

MILITARY ADMINISTRATION

I, Admiral the Lord Louis Mountbatten, GCVO., CB., DSO., ADC., Supreme Allied Commander, South East Asia Command, do hereby declare that until further notice I assume for myself and successors full judicial, legislative, executive and administrative responsibilities in regard to all the territories of Burma now or at any future time occupied by the Forces under my command and exclusive jurisdiction over all persons and properties therein.

I delete to the military officer for the time being holding the appointment of the Chief Civil Affairs Officer, Burma, full authority to conduct on my behalf the military administration of the civil population in the said territories, subject always to any orders and directions which I may issue from time to time. And for this purpose the said Civil Chief Affairs Officer is authorized to delegate sufficient powers to any officers under his command.

On 1 January 1944, certain territories in Kachin Hills, Naga Hills, Kabaw Valley, Chin Hills, Arakan Hills, and Akyab District were held by Allied Forces. Proclamation No. 1 of 1944 imposed on the Chief Civil Affairs Officer (Burma) Major-General C. F. B. Peace, CBE, delegated duties, functions, and powers to maintain law and order, to maintain the security of military operations, to prevent disease and unrest among the civil populations and to provide labor and local resources in furtherance of military operations.

Allied Reconquest

The Allied reconquest of Burma during World War II was a pivotal campaign that significantly altered the course of the war in Southeast Asia. The Japanese, emboldened by their earlier successes, aimed to invade India through the strategically vital regions of Imphal and Kohima. In early 1944, the Japanese launched Operation U-Go, their plan to capture Imphal and Kohima. The Battle of Imphal began in March 1944 and soon extended to Kohima.

Despite initial advances, the Japanese encountered fierce resistance and logistical difficulties, exacerbated by the onset of the monsoon season. The turning point came in April 1944, when the Allies managed to airlift supplies and reinforcements to the beleaguered garrisons. By July 1944, the Japanese had suffered catastrophic losses, with more than 50,000 dead. The battles of Imphal and Kohima effectively halted the Japanese advance into India and marked the beginning of the Allied reconquest of Burma.

With the Japanese retreating, the British Fourteenth Army commenced its southward advance into Burma. By early 1945, the Allies had made significant inroads into Burma. In the middle of March, the British attacked Mandalay. On 27 March, what is now honored as Armed Forces Day, Aung San marches the Burma National Army out of Rangoon on the pretense of fighting the advancing British only to turn on the Japanese and assist the Allies in capturing the capital. On 23 April 1945, leaders of the Burmese puppet government and their families left Rangoon, and on 3 May 1945, the British entered Rangoon unopposed. On 14 August 1945, the Japanese surrendered.

Military Administration of Burma

After Burma's liberation, the British military administration quickly established itself to manage the chaotic aftermath. Their primary objectives were to restore order, rehabilitate infrastructure, and address the dire humanitarian situation. The administration faced enormous challenges, including widespread destruction, food shortages, and displaced populations. Rebuilding efforts began almost immediately, focusing on restoring essential services such as water, electricity, and transportation, and reviving the agricultural sector to ensure food security and stabilize the economy.

Re-establishing civil administration was another daunting task. The British military administration also had to navigate a complex political landscape. Wartime experiences had intensified nationalist sentiments, and many Burmese leaders, including Aung San, demanded immediate steps towards independence. Balancing these demands with the need for stability and reconstruction was a key challenge. The administration engaged in negotiations with various political factions, including the Anti-Fascist People's Freedom League (AFPFL), led by Aung San, who had gained considerable influence during the war.

Recognizing the growing demand for self-governance, the British authorities began implementing measures to facilitate Burma's transition to independence. The administration mediated differences among ethnic groups and political factions, working towards a consensus for a peaceful and stable transition. This period of military administration was crucial for Burma's transition from colonial rule to independence in 1948.

Issuance of Military Administration of Burma Banknotes

In the immediate aftermath of World War II, Burma faced a significant challenge in stabilizing its economy. Before the British reconquest, there were 4 Anna and 8 Anna banknotes prepared with the issuer name "Military Administration of Burma." These unissued banknotes had serial numbers printed on the reverse, similar to the Ceylon fractional currency notes issued during World War 2. During the same period, the British also issued notes in North Africa with the title Military Authority in Tripolitania.

After the Japanese surrendered, the Reserve Bank of India reopened its Rangoon office on 20 August 1945. With with re-occupation of Burma, the pressing need for a stable and reliable currency became apparent. This necessity led the Burma Provincial Banking Enquiry to issue banknotes using Indian banknotes overprinted for use as legal tender in Burma only. The legal framework for these new banknotes was established by the Currency Notes Act, 1946 (Burma Act XXV of 1946), published on 12 July 1946. This act was retroactively effective from 16 October 1945, and defined “Burma notes” in two categories:

1. Burma Bank Notes and Overprinted Currency Notes of the Government of India: These notes were initially issued under the India and Burma (Burma Monetary Arrangements) Order, 1937, and later amended by the India and Burma (Burma Monetary Arrangements) (Amendment) Order, 1946.

2. India Notes Overprinted with “MILITARY ADMINISTRATION OF BURMA LEGAL TENDER IN BURMA ONLY”: These were issued by or under the authority of the British Military Administration of Burma or by the Governor's authority.

The use of overprinted Indian banknotes was a practical solution to the immediate need for a functional currency. This strategy ensured a swift and efficient introduction of a recognized and trusted medium of exchange within Burma. By overprinting existing Indian banknotes, the British military administration could quickly circulate the new currency without the delays associated with printing entirely new notes.

Four denominations of these overprinted notes were issued: 1 Rupee, 5 Rupee, 10 Rupee, and 100 Rupee. The overprint on these notes included the inscription "MILITARY ADMINISTRATION OF BURMA LEGAL TENDER IN BURMA ONLY." The overprint text on 1 Rupee, 10 Rupee, and 100 Rupee notes is in red, while, the overprint text on 5 Rupee notes is in black. In addition to the English text, the King George VI front portrait 10 Rupee notes also have an overprint in Burmese text signifying the domination of the note as the reverse of the 10 Rupee note does not contain the Burmese language.

The above indicated that these notes were exclusively for use within Burma. By issuing the notes and implementing the Currency Notes Act, 1946, the British authorities addressed the economic disarray and laid the foundation for a stable post-war economy. These Indian overprinted banknotes were demonetized on 1 June 1950.

1 Rupee Overprint Banknote

The note is overprinted over the Government of India 1 Rupee banknote which has the portrait of King George VI at the upper right. There are 2 varieties, the first type has a black serial number without an inset letter, while, the second type has a green serial number with an inset letter A.

Denomination: 1 Rupee
Issuer: Military Administration of Burma
Size: 101 x 63 mm
Color: Blue-gray
Obverse Design: King George VI facing left
Reverse Design: 1 rupee coin dated 1940; Language panel
Date: None
Signature: C.E. Jones
Material: Paper
Security Thread: None
Watermark: King George VI facing right
Printer: India Security Press

There are 2 serial number color varieties

Variety 1: Black serial number without inset letter
Prefixes: T/99, U/0, U/1
Catalog Number: Banknote Book B503a; Pick 25a

Variety 2: Green serial number with A inset letter
Prefixes: C/86 - C/99, D/0 - D/71, E/42 - E/99, F/0 - F/61
Catalog Number: Banknote Book B503b; Pick 25b

5 Rupee Overprint Banknote

The note is overprinted over the Reserve Bank of India 5 Rupee banknote which has the portrait of King George VI facing left. There are 2 varieties, the first type has the signature of J.B. Taylor, while, the second type has the signature of C.D. Deshmukh.

Denomination: 5 Rupee
Issuer: Military Administration of Burma
Size: 101 x 73 mm
Color: Brown, violet and green
Obverse Design: King George VI facing left
Reverse Design: Language panel
Date: None
Material: Paper
Security Thread: None
Watermark: King George VI facing right and text
Printer: India Security Press

There are 2 signature varieties

Signature 1: J.B. Taylor
Prefixes: J/62 - J/65
Catalog Number: Banknote Book B504a; Pick 26a

Signature 2: C.D. Deshmukh
Prefixes: N/20 - N/31, N/75 - N/80, P/11 - P/48
Catalog Number: Banknote Book B504b; Pick 26b

10 Rupee Overprint Banknote

The note is overprinted over the Reserve Bank of India 10 Rupee banknote signed by C.D. Desmukh which has the portrait of King George VI facing front. Interestingly, the 10 Rupee overprint banknote also had an additional Burmese script in front.

Denomination: 10 Rupee
Issuer: Military Administration of Burma
Size: 137 x 77 mm
Color: Violet, brown, olive green, orange and blue
Obverse Design: King George VI facing front
Reverse Design: Language panel; Sailboat
Date: None
Signature: C.D. Deshmukh
Material: Paper
Security Thread: None
Watermark: King George VI facing front and text
Printer: India Security Press

Prefixes: C/0 - C/10, C/79 - C/90, D/56 - D/75
Catalog Number: Banknote Book B506; Pick 28

100 Rupee Overprint Banknote

The note is overprinted over the Reserve Bank of India 100 Rupee banknote which has the portrait of King George VI facing left with Calcutta as the office of issue. There are 2 varieties, the first type has the signature of J.B. Taylor, while, the second type has the signature of C.D. Deshmukh.

Denomination: 100 Rupee
Issuer: Military Administration of Burma
Size: 171 x 107 mm
Color: Green, pink and orange
Obverse Design: King George VI facing left
Reverse Design: Language panel; Tiger
Date: None
Material: Paper
Security Thread: None
Watermark: King George VI facing right and text
Printer: India Security Press

There are 2 signature varieties

Signature 1: J.B. Taylor
Prefixes: A/62 900001 - 1000000, A/73 000001 - 200000
Catalog Number: Banknote Book B507a; Pick 29a

Signature 2: C.D. Deshmukh
Prefixes: A/89 700001 - 1000000, A/98 000001 - 100000, B/7 600001 - 1000000, B/16 000001 - 700000, B/23 700001 - 1000000, B/47 000001 - 100000.
Catalog Number: Banknote Book B507b; Pick 29b

Conclusion

The issuance of Military Administration of Burma banknotes played a vital role in stabilizing Burma's post-war economy. These notes provided a reliable medium of exchange, essential for the country's economic recovery. The successful implementation of these banknotes demonstrated the British administration's efforts to restore monetary order. The next significant development in Burma's currency history was the Burma Currency Board overprint issue, which continued the evolution of Burma's monetary system.

Frequently Asked Questions

Q: What were the British Military Administration of Burma banknotes?

A: These were banknotes issued by or under the authority of the British Military Administration of Burma following the Allied reconquest of Burma in World War II. They were primarily Indian banknotes (1, 5, 10, 100 Rupees) overprinted with "MILITARY ADMINISTRATION OF BURMA LEGAL TENDER IN BURMA ONLY" to stabilize the post-war economy.

Q: What was the purpose of Proclamation No. 1 of 1944?

A: Issued by Lord Louis Mountbatten on January 1, 1944, Proclamation No. 1 of 1944 declared the assumption of full judicial, legislative, executive, and administrative responsibilities by the Supreme Allied Commander over territories of Burma occupied by Allied Forces, delegating authority to the Chief Civil Affairs Officer to establish military administration.

Q: What was the legal framework that authorized the issuance of these British Military Administration banknotes?

A: The legal framework for these banknotes was established by the Currency Notes Act, 1946 (Burma Act XXV of 1946), which was published on 12 July 1946, but was retroactively effective from 16 October 1945. This Act formally defined the "Burma notes" that were legal tender, including the newly overprinted Indian notes issued by the British Military Administration.

Q: What specific denominations of Indian banknotes were overprinted for the British Military Administration of Burma?

A: Four denominations were overprinted: 1 Rupee, 5 Rupee, 10 Rupee, and 100 Rupee. The overprint text was typically in red, except for the 5 Rupee notes which used black overprint. The 10 Rupee (King George VI front portrait) also had an additional Burmese overprint.

Q: When were the British Military Administration of Burma banknotes demonetized?

A: These Indian banknotes, overprinted for use by the British Military Administration of Burma, were demonetized on 1 June 1950, marking the end of their legal tender status in Burma.