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A CONFIDENTIAL.

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Sir,

GOVERNMENT HOUSE.

HONGKONG. 10th. February, 1915.

I have the honour to confirm my telegram of the

3rd. instant, copy enclosed, which I deemed necessary as local British Banks were enquiring as to their position under the Pro- -clamation of the 7th. January concerning trading with the enemy, and to acknowledge with thanks your reply, copy enclosed, of the 6th. instant. Prior to its receipt the Hongkong and Shanghai Bank received a telegram, copy enclosed, from its office in London, which apparently indicates that purely financial transactions are

aimed at by the Proclamation.

If this is so the Proclamation does not concern

local British Banks whose dealings with enemy firms in neutral countries are of a commercial nature only and are, as far as German Firma are concerned, I understand now limited to cash transactions.

I have the honour to be,

Sir,

Your most obedient,

humble servant,

HE RIGHT HONOURABLE

LEWIS HARCOURT, M.P.,

& C

&C..

&c...

Governor,&c..

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