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ships to the American flag. He is also believed to have helped in coaling and provisioning the German

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cruisers then in these watera. He unwisely returned to Hongkong and is now a prisoner of war.

Mr. Bune comparatively recently acquired about a half share in two vessels flying the british flag. vir. "Devawongse" and "ihranang" which were engaged in the local trade, The price paid for each vessel was about £8,000. They have now been sold to a byndicate of Hongkong Chinese for $200,000. (£17,500) each. Carlowits & Co. Looked upon as one of the most dangerous firms. Correspondence shows they have information about the movements of the British leat

shortly before the war and were no doubt in close touch with the German officials. This probably will account for the fact that when war did break out they had

comparatively small stocks in tongkong. These are now

being liquidated.

un the outbreak of hostilities .r. Charles Rayner,

a former partner, who had retired from the firm for some

time previously, returned to China and opened agencies

in Thanghai, Canton and longkong. He is registered as & Eritish subject

When .r. kayner first opened business in Hongkong

he employed a man of Austrian (or possible German)

origin, who had previously been engaged as a clerk in

the italian consulate, inter he put in a man secured from

another German fim in vanton. Loth these men were

rejected by the "ongkong Government.

a it was known .r. hayner was doing a good business in Canton, following up carlowitz's business,

the

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