28

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Jeroe? Iminolo

36

I do not recommend the immediate closing of German firms

for the following reasons, the effect of which would, I believe,

be:-

1.

3.

4.

5.

6.

To throw a number of Chinese and Portuguese (Hongkong

domicile) out of employment.

Disorganise trade by (a) cancellation of contracts both imports and exports and (b) adverse effect on home markets, especially in cases of orders already in hand. The shutting down of German firms without allowing them to fulfil their engagements might be inflicting hard- ships on British Manufacturers as well as depriving them of the advantage which the war should give them over their continental rivals. It might also be a hard- ship on Chinese dealers who have contracted to deliver produce to them for export.

Would affect Banks adversely by rendering outstandings more difficult to collect and probably in some cases

result in actual loss.

While I have not the slightest doubt that British firms would ultimately be quite competent to handle the entire trade of Hongkong there would I believe be temporary dislocation, and probable hardships which might affect adversely some of the most important vested interests in the Colony, and I would deprecate risking it unless it is thought the exigencies of the situation demand it. I do not advocate that German firms be allowed to under- take new business during the continuance of the war.

Sd.

War. Dickson

Manager,

Chartered Bank of India, Australia & China.

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