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Telegraphic.

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No. 2.

From His Excellency the Governor to the Secretary of State.

14th August, 1914.

Your authority is requested to allow Deutsche-Asiatische Bank to liquidate under supervision of Hongkong and Shanghai Banking Corporation Limited. No new business will be carried on. No money will be reinitted to German Empire.

C

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Telegraphic.

No. 5.

From the Secretary of State to His Excellency the Governor.

15th August, 1914.

Your telegram of 14th August Deutsche-Asiatische Bank proposal approved.

Telegraphic.

No. 6.

No. 3.

COLONIAL SECRETARY'S DEPARTMENT.

No. 319. It is hereby notified that a Proclamation has been issued in the United Kingdom applying to the War between Great Britain and Austro-Hungary, all proclama- tions which have been issued relating to the War between Great Britain and Germany, and also the Order-in-Council relating to the granting of days of grace, with the substitution of Saturday, the 15th August, 1914, for the date mentioned in Article No. 2, and of Saturday, the 22nd August, 1914, for the date mentioned in Article 3, of the said Order-in-Council.

From the Secretary of State to His Excellency the Governor.

18th August, 1914.

August 18th. Referring to your cypher telegrains of 8th August and 10th August regarding German subjects the same arrangements may continue: the same arrangements should apply to Austrian subjects also. The reservists at Shameen should be treated in the same way as the reservists in Hongkong.

15th August, 1914.

Telegraphic.

By Command,

No. 4.

CLAUD SEVERN,

Colonial Secretary,

Telegraphic.

No. 7.

From His Excellency the Governor to the Secretary of State.

24th August, 1914. Referring to my telegram of 15th August as the matter most urgent propose

with your approval to issue licences immediately in order to enable German Empire firms to complete transactions already entered on. Referring to your telegram of 18th August it is understood that effect of this permission will be that these persons will be placed in same position with regard to trading as other foreigners but that their rights under this permission will be con- fined to new transactions entered into for their own benefit and not for benefit of their part- ners in German Empire.

From His Excellency the Governor to the Secretary of State.

15th August, 1914. Hongkong and Shanghai Banking Corporation, Chartered Bank of India, Australia and China, and Mercantile Bank of India, Limited, beg that by gracious permission local firms which are brauches of firms in German Empire may be allowed to continue business in order to enable them to dispose of their stocks in Colony which are under contract for sale and otherwise under safeguards to prevent proceeds leaving Hongkong during the war.

All goods to be placed in possession of above mentioned banks to be delivered by banks, cash on delivery only. German firms will undertake to pay into banks to special accounts all moneys received in respect of goods previously delivered. Banks will undertake to retain such moneys and also receipts for new deliveries and not to pay out to German firms or to anyone without authority of Government of Hongkong. Government of Hongkong to authorise payments in discharge of indebtedness to British firms and banks if satisfied as to bonâ fide. No goods to be returned to German firios without authority of Government of Hongkong, Banks to be authorised at their discretion to allow German firms money to meet current expenses and in order to enable proposed arrangements to be carried out but not in order to enable new business to be done. Permission also to cover goods due to arrive, if shipped before declaration of war, but only on condition that goods are put in possession of above mentioned banks, and breach of any of the terms proposed by any firm will entail forfeiture of interest in any property within the Colony. Goods referred to within the Colony estim- ated at over $6,000,000 British concerns interested in over 75% neutral concerns also interested. Above mentioned banks urge strongly necessity for permission in interests of themselves and Colony otherwise interests of British banks seriously affected and serious effect on Chinese trade. Strongly recommend and may I point out that there can be no question of sending supply of money to German Empire. It is doubtful whether remittance to German Empire can be prevented in any other

way.

Telegraphic.

No. 8.

From His Excellency the Governor to the Secretary of State.

26th August, 1914.

Referring to my telegrain of 24th August telegrams have been received by various mercantile firms to following effect namely that His Majesty's Government have decided that British firms may trade with Austro-Hungarian or German Empire firms established neutral or British Territory. Please send instructions as soon as possible.

No. 9.

Extract from a Despatch of 26th August, 1914, from His Excellency the Governor to the Secretary of State.

7. I have addressed you at length in code telegrams of the 15th and 24th instant concerning the policy to be adopted in dealing with the trading of German Firms in the Colouy, and I was reluctantly obliged to address you again on the subject in my telegram of the 26th instant owing to the frequent enquiries by Shipping Firms and merchants as to the delivery of goods consigued from England to German Firns or from Germany to British and Chinese consignees in the Colony. There are many other intricacies of the question which it is unnecessary to refer to as doubtless instructions will soon be received from you.

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