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The Governor of Hong Kong to the Secretary of State for the
Colonies,
306
(Received Colonial Office 12.10 p.m.15th August 1914)
Hong Kong and Shanghai Banking Corporation, Chartered Bank of India China and Australia and Mercantile Bank of India Limited
local beg that by permission of (?) firms which are branches of firms in German Empire to be allowed continue business in order to
enable them to dispose of their stocks in Colony which are under
contract for sale and otherwise under safeguards to prevent pro-
ceeds leaving Hong Kong during the war. All goods to be placed possession of above mentioned banks to be delivered by banks cash
on delivery only. German Empire firms will undertake to pay into
Bank to special accounts all money received in respect of goods
previously delivered. Banks will undertake to retain such moneys
and also receipts for new deliveries and not to pay out to German
Empire firms or to anyone without (pro-per) authority of Govern-
ment of Hong Kong. Government of Hong Kong to authorise payments
in discharge of indebtedness to British firms and banks if satis-
fied bona fide. No goods to be returned to German Empire firms without (proper) authority of Government of Hong Kong. Banks to be authorised at their discretion to allow German Empire firms
money to meet current expenses and in order to enable proposed arrangement to be carried out but not in order to enable new business to be done. Permission also to cover goods due to arrive if shipped before declaration of war but only on condition that goods are put in possession of above mentioned banks and breach of any of their terms proposed by any firm will entail forfeiture of interest in any property (of) in the Colony. Goods referred to in the Colony estimated at over 6,000,000 dollars British concerns interested to over 75 per cent neutral concerne also interested. Above mentioned banks urge strongly necessity for permission in interests of themselves and Colony otherwise interests of British banks seriously affected and serious effects on Chinese trade. Strongly recommend and may I point out that there can be no question of sending supply of money to German Empire it is doubtful whether remittances to German Empire can be prevented in any other way.
MAY.