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Enclosure 4.
Paraphrase of Cypher Tele gran. From......
To...*
Date....
792
Governor, Hongkong.
.Secretary of State.
..23rd. December, 1915.
Referring to your code telegram of December 21st. Reiss & Co. are not satisfied with their present position as they are only advisory agents to Mr. Cheetham with no control over his actions though lending him the benefit of their name. They have notified their principals in London that they insist on a power of attor- -ney for Canton and Hongkong and general control of signature for Smdera Rehders. They wish to resign the agency if this general # control is not conceded. Their reason is that it is they and not Mr. Cheetham who in the eyes of the Chinese are the responsible agents, and they fear they may be held responsible for mistakes whi made. They tell me that Mr. Douglas travelling inspector of the Texas Oil Co. who was recently here, has recommended his principal: to appoint Reiss & Co. agents and stop in their connection with Sanders Rehders. This recommendation was made entirely on his ow and was not inspired by Reiss & Co.
Reise & Co. are not satisfied to retain Cheetham and may elimination of him would not help matters unless it would apsaI assist you to put pressure on Sanders Rehders to concede the terme of Reise & Co. which from a business if point of view, are reasonable, in which case I am prepared to eliminate him. Reiss & Co. are a good British firm beyond suspicion. Their re- -presentative here has lately, as nominee of the Chamber of Commerce, been appointed to Legislative Council. I think now that there is little doubt the Reuter Brockelmann will be re- -employed as sub-agents if Sanders Renders retain the agency.
May.
1