18
Sir,
Hongkong.
Enclosure $2
19th October, 1914.
With reference to your request for an expression of our
opinion as to whether the trade and prosperity of Hongkong would be
permanently affected should the Government decide to deport or intern
all German and Austrian subjects here, we have made sous enquiries in quarter which are familiar with the trade which is handled by
German and Austrian firms, and the information we have obtained con-
firms the opinion we already held, viz: that the trade of the Colony would suffer no permanent damage should the Government adopt the
measure indicated.
It is to be supposed that active and efficient business men such as are the Germans, would not give up their trade connections here without a struggle in which they would be backed to a certain extent by the Hanchester and other British firms which have dealt with them for many years. These Manchester firms, it may be explained, are middlemen between the Manufacturer and the importer here, and if one may judge by their names, they are largely of German Jewish
extraction.
The first idea that would suggest itself to the deported German Merchant would be no doubt to establish himself in Canton and try and resume the business he did in Hongkong. Canton, however, is not now a large distributing centre, and it is very probable that the Germans would find no greater success than several others who have already in recent years tried to establish direct import trade there.
The Chinese dealers who have been accustomed to trading with German houses would not follow them to Canton, for two pRIŢNTEX reasons. (1) They can get precisely the same goods from British merchants here, as the Germans would have to offer them in Canton. It is not the customs of the Chinese dealers to confine their operations to German firms they deal impartially with both British and Germans
.E. Sir F. H. May, K.C.M.G.,
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Hongkong.