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(9) It

may be that the remuneration of 21% may be excessive in particular cases. If so there would be no objection to your agreeing to accept a lower rate, and I am to add that should this rate appear to work any substantial degree of hardship the Government would be prepared to amend the Ordinance accordingly.

(10) Reference may be made to the Government in any case of doubt, but the Government does not wish to interfere with the liquidators more than is absolutely necessary, and I am to suggest to you that it might be well for the various liquidators of alien enemy firms to establish some central organization or association to discuss any difficulties of a general nature and to arrange for concerted action on the same lines in every case. (11) The treatment of the staffs of the alien enemy firms will be one of some little difficulty and this is a point upon which it is advisable that the liqui- dators should consult the persons whose interests they are winding up. The latter might in some cases wish old employees to be retained as long as possible, possibly at a reduced salary, although their services might not be entirely necessary. It must also be remembered that any employee who has a contract with the alien enemy firm for any definite length of time will have a claim against the assets of the firm if his dismissal is not justified by the terms of his contract. No doubt in some cases dismissal will be necessary, leaving the dismissed employee to make his claim for damages.

(12) Great care should be taken not to exert sudden or undue pressure on alien enemies' debtors. Liquidators will be guided of course by their own knowledge of the market and by what they can gather of the practice of the firm which they are winding up.

(13) I hope to address you on the subject of leases to alien enemy firms in the

course of the next few days.

I have the honour to be,

Sir,

Your obedient servant,

Colonial Secretary.

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