Paraphrase of CYPHER Telegram
Enclosure. 1
30
From GOVERNOR HONG KONG
To SECRETAHY OF STATE.
Date 21st October 1914.
Your cypher telegram of 16th Uctober. My comments are. Communication with Germany is only possible over a censored cable or through the wireless station at Sayville in America where, I understand, message S are also censored. Uncensored cable communication with Bangkok Singa- pore and westwards is also impossible. All German postal matter is dø censored. Uncensored communications by hand to Canten and thence by post or telegraph to Shanghai and Manila is possible, but the cable from Manila to the Netherlands India is interrupted and wireless on German ships at kanila is dismantled and messages sent through the Government wireless station there are cencored, it is difficult therefore to understand how serious leakage of news can come from Hong Kong. It is impossible to immediately close down German firms entirely without injury to British and Chinese interests because contracts both for import and expert entered into before the war and now being, executed will require at least six months to wind up. There are also many forward contracts made before war by German firms for imports from England and neutral countries and exorta from China. Dealing with these would present further difficulty. The alternatives appear therefore to be firstly to restrict German Firms to liquida-
tion of contracts entered into before the war. Secondly to allow things to remain as already approved by you. I would point out that
even if there were no Germans here it would be easy for Germans in
Canton or Macao to establish a system of espionage by Chinese
travelling daily to and from Hong Kong by steamers or trains, finally
effect of total suppression of German trade which is largely on behalf of British manufacturers here on future of Colony must be
considered.
Local trade in negligible Hong Kong is distributing
centre of imports and exporte før South China.
WAY