By 1940, Hong Kong was under the threat of Japanese invasion with the majority of branches in East Asia already in the hands of Japanese. Morse was sent to London by the then-Chief Manager of the bank Vandeleur Grayburn, to lead the bank and shift the headquarters to London to avoid the reserves being frozen in New York and San Francisco by the American authorities in the case of a Japanese take over in Hong Kong. On 16 December 1941, 9 days before Japanese occupation, Morse was appointed as the Commissioner and General Manager of the bank.