81
Section 4 (c) is intended to make it clear that
the liquidators shall have power to deal with any prop-
erty of the alien enemy firm which may be within the
Colony, although the property in question may have been
the subject of transactions by some branch of the alien
enemy firm outside the Colony. In some cases the Can-
ton branches of the German firma in Hongkong used to keep
their goods in the warehouses of the Hongkong branches
until delivery was applied for by the Chinese dealers at
Canton or until the Canton branches had been able to
effect a sale.
In some cases the branches outside
the Colony of German firms in Hongkong owe considerable
sums to the Hongkong branches, It was therefore thought
desirable to make it quite clear that such goods could
be treated by the liquidators as assets of the alien
enemy firms for the purpose of obtaining funds to dis-
charge the liabilities of the local branches.
Section 4 (e) is intended to make it clear that
the appointment of anliquidator shall not affect in any
way any obligations incurred by the compradore of the
alien enemy firm before the date of such appointment
and shall not discharge the compradore's sureties in
respect of such obligations,
Section 5 is one of the sections which is intended to exclude the operation of the Bankruptcy Ordinance.
The other sections are section 14 (b) and section 11. The new sub-section (11) of section 5 of the Principal Ordinance added by section 7 of this Ordinance provides for the payment of the liquidators expenses and remunera- tion in the case of solvent firms,. This point was in-
omitted in the Principal Ordinance.
The new sub-section (12) of the same section alters the
priority of the liquidators' expenses and remuneration in
the case of insolvent firms. It also provides that the
liabilities to be discharged by the liquidator are such lia-
bilities as arise out of transactions entered into by the
Hongkong branch of the alien enemy firm. This latter pro-
vision gives the liquidator discretion on this point, but
the liquidator will always be subject to the instructions of
the Governor.
The new sub-section (13) of the same section provides
for contribution by the secured creditors in case the assets
are insufficient to pay the liquidators expenses and remunera
tion.
The new sub-section (14) of the same section provides
for the auditing of liquidators' accounts,
The new sub-section (15) of the same section deals with
the question of obstruction offered to a liquidator in taking
possession of the alien enemy's property.
The new sub-section (16) of the same section gives the
Governor power to award a higher rate of remuneration in
special cases, but it is provided that this sub-section shall
not affect the rights of any secured creditor.
Sections 6 and 8 are formal,
Section 9 deals with the case of persons who may attempt
to carry on an alien enemy's trade for the benefit of such
alien enemy.
It seems probable that such attempts are being
made, or will be made, in a few cases. The amendment now
made makes it clear that the section is not aimed at persons
who engage in trade, which had been parted with or abandoned
by the alien enemy before the outbreak of war, and incidentally
advertently