NO CONFIDENTIAL.
41538/5
ANTED
FOR
USE
MISOELLS.
No. 9/1
COLONIAL
OFFICE
252
م
sir,
HONGKONG.
GOVERNMENT HOUSE.
7th September, 1914.
Fur 13820.3915
With reference to paragraph 7 of my secret despatch of the 26th of August, I have the honour to report that the question of the German and Austro-Hungarian firms established in the Colony, which is of much importance on account of the number of the German firms and the British allied and neutral interests involved, has been dealt with in accordance with the general instructions con- tained in your telegram of the 27th August, which was in reply to my telegrams of the 15th and 24th August.
2.
The main principles which have been relied upon in working out and applying those instructions may be shortly stated as follows:-
(a). Enemy subjects allowed to remain in the Colony are, for
such time as they in fact stay, placed in the same posit- ion as other resident aliens.
(b). Such enemy subjects are of course subject to the general law against trading with the enemy, and accordingly they must not, without permission, take part in any transact- ion which is for the benefit of any person in enemy territory.
(c). In order that firms which are branches of firms in enemy
territory, and firms which have a partner in enemy terri- tory, may complete transactions embarked upon before the war, special permission is necessary.
THE RIGHT HONOURABLE
Note: (i). Such permission was thought highly desirable
here owing to the magnitude of the British allied and
LEWIS HARCOURT, MP
&c
&C.