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FOUR
COUNCIL MEETING
positions held in certain institutions with which I was connected, I expressed the hope and I am perfectly certain it was thoroughly reciprocated by them-that although this war had unhappily broken out between our countries it would not now, and certainly not in the future, have any effect upon our friendly relations. That is a distinct prayer, and I am sure it will be endorsed by all residents of Hongkong Turning to the conditions of the Bill, with which I confess I am imperfectly Roquainted, certain safeguards have been pointed out by the Attorney-General to prevent money reach- ing the enemy's country. Possibly these safeguards may be effective here, but I can quite conceive, knowing as I do many details of the business of the Colony, that it is quite possible for a German working in his own name or that of a friend, to have money transferred beyond the jurisdiction of this Colony-and for the moment we are only concerned with the jurisdiction of the Colony-and for that money to be transferred through other countries to Austria and Germany. 1 cannot conceive that any safeguards you make in this Bill could prevent a certain amount of money and profits of trade made by Austrians and Germans reaching their respective countries. At any rate, even if you do, that money, which is, say, for the sake of argument, deposited in the Hongkong and Shanghai Bank, the Char- tered Bank, the Mercantile Bank or any other bank here, would immediately the war ceases, as accumulated
money, be available for their interests, And I take it that this would be doing much harm to us because it would be putting them in a financial position to meet the consequences of this war. It is not an many years ago that the father of the late Shah of Persia was very much per- turbed about the terrible condition of one of his outlying provinces. What did he do He appointed a very near relative as governor-genera! with a free hand. The province was given over to brigand- age; it was not safe for one moment. That Governor-General executed two of the leading brigands, and the severe and frightful barbarities by which those men were put to death quietened the men of that province so long as he ruled there. That, however, is not our policy; but we are unfortunately embarked on a war which means a fight to the finish with some of the greatest Powers in the world. The only way we can bring that war to R speedy finish's by crippling the enemy every possible way. Therefore, speaking for myself and a large number of the mercantile community of Hongkong who have discussed this question with me in various forms-I think I am perfectly justified in speaking for the Chamber I, have the honour of representing and for the business community who have done me the honour of placing me in this posi tion in the Council-I think we ought to fight the enemy in every way we can, and I entirely agree with the hon. member who representa the Justices of the Peace in what he said just now, that we should not allow our quendam friends, now our temporary enemies, to make any profit whatever. We ought to cut off their resources in every possible way we can, and although as your Excel- lency has pointed out, this Bill is the outcome of the decision of the Secretary of State because it is the policy adopted by His Majesty's Government in England we out here can possibly realise certain directions where trade can be carried on to benefit the enemy in time of war. We as a community wish to protest against We think his Majesty's Government
it.
is wrong, and I should be wrong and a traiter to the interests I represent here if I did not press that point upon the Government in the strongest possible manner. I know any protest I make will, have no effect, but I think it should be put on record that we as a business com. munity think the policy of His Imperial Majesty's Government is wrong. We quite recognise that large British interests have been involved, and are still involved. Enormous sums have been mentioned-I do not know how much, but it runs into wany millions—where British banks and British merchants are mixed up in im- ports and exports in the Far East with Certain German firms, and clearly it is the business of the Government to endeavour to reduce those losses as much as possible, and it is imperative that our German and Austrian friends-I still call them friends although they are enemies— should be allowed carry out their old- standing contracts. But although I main- tain that it is perfectly correct that the Government should give every possible opportunity for clearing off all old obligations as has been done in the case of the German-Asiatic Bank, this facility for trading should not be continued and no new contract should be entered into. As I understand this Bill it appears to me that provided the Governor-in-Council is satisfied that people carrying on busi- ness here, be they German Austro- Hungarian, are carrying on their business in a perfectly bond fide manner and not allowing their profits to go to either of the countries with which unfortunately we are at the moment at war, they can carry on their business. Therefore, the petition of our German and Austrian friends which has been going on so keenly for so many years will continue here with the official sanction of the Hongkong Government, and, I might say, of the Imperial Government, as though war were not in existence. That I say and maintain is an absolutely wrong proposition which should not be permitted for & moment. We are very anxious indeed that all out standing obligations should be carried out, but at the came time we consider that once there have been fulfilled our quondam friends should not be allowed to sili
or
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continue their competition with British and other Allied Powers who ut the ag ment are at war with them. The Attory, General appeared to make rather a point in his remarks that so long as German and Austrian firms had no braches or led offices in Gorman or Austrian territory they should be allowed to continue their businesses. I have been informed that of all German merchants here, and of course they represent a very large proportion of our trade, there are only two small insignificant firms who come under toat category. Therefore the point which the Attorney-General tried to make as to our liability and the proper way we should treat alien firms, comes down to this: that practically the whole export and import business of Hongkong is done by German firms, and it does not come under that category at all.
The ATTORNEY-GENERAL-That informa tion is not up to date.
Hon. Mr. HeWETT-I am speaking on the strength of a letter addressed to me by the Colonial Secretary, which I thought good enough to quote.
The ATTORNEY-GENERAL The same thine would apply to any local partners of Brms which at present have branch firms in Germany. Local partners of such firms, as long as they remain in the Colony, would be able to trade on their own account.
Hon. Mr. HEVETT-Thank you for your very valuable information; it makes my point even stronger. There are ⇓ number of firms here who have local partners, and some are represented in the room et this moment. The question of heal partners is extended very freely in pontinental firms, and there is hardly a Camman or Bustrien firm here enraged in business which has not local partners.