A new two stage system has been developed to carry out tile catalytic oxidation of hydrogen chloride to produce chlorine for recycle. The process combines the exothermic oxidation of hydrogen chloride to produce equilibrium conversion to chlorine of 60 to 70% at 380-400 degrees C in a fluidized bed of copper oxychlorides impregnated on a particulate zeolite which is then transferred to a second reactor operating at 180-200 degrees C where all of the unconverted hydrogen chloride in the overhead gas from the first reactor is reacted, yielding a stream of chlorine, residual oxygen and nitrogen, along with water vapor which passes onto a recovery system. This paper describes the operation of a bench scale two stage continuous circulation reactor system which demonstrates the process. Tables are presented with results of the experimental variations of now quantities. The recovery of the chlorine values in this process is 100% with no residual hydrogen chloride appearing in the chlorine product stream.