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(c.) He must not remit any money directly or indirectly to the German or Austro-
Hungarian Empire.
(d.) He must not engage in any other transaction which may be contrary to the law
in force in the Colony for the time being.
(e.) He must pay into the Hongkong and Shanghai Banking Corporation, or the Chartered Bank of India, Australia and China, or the Mercantile Bank of India, Limited, all moneys received by him in respect of such trading. (f) If immediately before the outbreak of war between His Majesty and the country of which be is a subject, he was trading in partnership with any person who now resides, carries on business, or is, in the German or Austro-Hungarian Empire, or who may during the continuance of such war so reside, carry on business, or be, he must not continue to use his former name, but must trade under some other name which will indicate that his new business is a distinct enterprise. The substitution of "A.B. (Hongkong) & Co." for "A.B. & Co." will bə accepted for this purpose.
(9.) He must not use any name calculated to induce any one to believe that any
member of the firm is of British, allied or neutral nationality.
(4.) The permission to remain in this Colony and trade under the above conditions is subject to revocation at any moment in the absolute discretion of His Ex- cellency the Governor.
Messrs. Deacon, Looker, Deacon & Harston.
Messrs. Johnson, Stokes & Master.
Messra, Wilkinson & Grist.
I am, &c.,
CLAUD SEVERN,
Colonial Secretary.
Enclosure in No. 12.
COLONIAL SECRETARY'S OFFICE.
HONGKONG, 28th August, 1914,
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(9.) No money to be remitted directly or indirectly to German or Austro-Hungarian
territory or ships.
(h.) No authority to be given by any of the said firms, whether legally binding or bot, for the purpose of enabling any person or authority in German or Austro- Hungarian territory, or on board German or Austro-Hungarian ships, to treat any of the goods or moneys herein referred to as security, whether legal or otherwise, for any advances made or received or hereafter to be made or received.
(i.) In case of any question arising as to whether any particular thing would be authorised under this permission reference to be made to the Government before any action is taken.
(j) Breach of any of the above conditions by any of the said firms to entail
forfeiture of that firm's interest in all property within the Colony.
(4.) Nothing in this permission to affect any right of capture at sea, or the
jurisdiction of any prize court, or the rights of any allied powers.
(2) This permission to be revocable without notice at any moment in the absolute
discretion of His Excellency the Governor.
I am to ask you for an early reply as to whether each of the firms in question will accept the above permission on the above conditions as otherwise steps will have to be taken to prevent its further trading.
The arrangement proposed is of course conditional on the concurrence of the bank or banks which will be concerned in each case, and I am to ask you to ascertain whether the banks with which each of the arms in question has dealings or proposes to deal will accept their obligations thereunder.
As the above conditions do not appear to be suitable in the case of one firm for which I understand that you act, e., Messrs. Gaupp & Co., I am to request you to submit in that case separate proposals which may be discussed beforehand with the Attorney General.
I am also to ask you for particulars of any interest possessed in the local firm of Jebsen & Co. by the firm in Germany or by its partners,
GENTLEMEN,-am directed to inform you that the firms whose names appear at the foot hereof will be allowed to carry on business for the purpose of disposing of their stocks now in the Colony and of goods due to arrive if shipped before the outbreak of war. permission will be subject to the following conditions :-
This
(a.) All goods now in the Colony to be placed in possession of the Hongkong and Shanghai Banking Corporation, the Chartered Bank of India, Australia and China, or the Mercantile Bank of India, Limited.
(b.) All goods due to arrive to be placed on arrival in possession of one of the above
banks.
(c.) No goods to be delivered by the banks except for cash: the firms concerned to undertake to pay into one of the above banks to a special account all moneys received by them in respect of goods already delivered or on any other account: the banks to undertake to retain all such moneys, and also all moneys received by them in respect of deliveries of goods, except so far as such moneya may be necessary for the purpose of discharging the firms' liabilities to the banks in question, and not to pay out any of the moneys above referred to to any one without the authority of the Governinent.
(d.) The banks to be deemed to have the authority of the Government to allow the said firms money to meet current expenses and to enable these arrangements to be carried out, but not in order to enable any new business to be done: the banks to use their discretion in this matter and to refer to the Government in any serious case of doubt.
(e.) No goods to be returned to the said firms without the authority of the
Government.
(f) The Government will be prepared to authorise payments in discharge of indebtedness to British, allied, and neutral, firms and banks, if satisfied of bond fides.
t
I am, &c.,
CLAUD SEVERN,
Colonial Secretary.
Messrs. Deacon, Looker, Deacon & Harston,
Messrs. Blackhead & Co.
Sander, Wieler & Co.
Garrels, Börner & Co.
}]
11
Meyerink & Co.
#
Arnhold, Karberg & Co.
Reuter, Brockelmann & Co.
J1
31
China Export-Import-and-Bank Compagnie.
Melchers & Co.
"
No. 13.
Confidential.
From His Excellency the Governor to the Secretary of State.
GOVERNMENT HOUSE, HONGKONG, 7th September, 1914.
SIR, I have the honour to report that the local branch of the Deutsch-Asiatische Bank
is being allowed to liquidate its affairs, under the authority of your telegram of the 15th
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