Any further communication should be addressed to-

THE ASSISTANT SECRETARY,

at the addrem given opposite.

The following letter and number should be quoted :-

C. 35269.

Telegraphic Address:

COLASTA, LONDON. Telephone No.: 3840 Victoria.

36

Ji

C.O

51487

205

BOARD OF TRADE, REC

COMMERCIAL DEPARTMENTS

GWYDYR HOUSE,

WHITEHALL,

LONDON, S.W.

6th November, 1915.

Sir,

I am directed by the Board of Trade to acknowledge the receipt of your letter (No.48229) of the 28th October transmitting an extract (undated) from a report by the Censor at Hong Kong on certain telegrams sent between Messrs. Arnhold, Karberg & Co., of London, and Messrs. H.E. Arnhold & Co., of China, and in reply I am to offer the following observations.

The former of the two Companies is of course permitted to trade, subject to the same conditions as a purely British firm.

Messrs. H.E.Arnhold & Co., having accepted certain conditions, have been definitely recognised by His Majesty's Government as a British firm. They have dismissed their German employés, and a Supervisor of the Company has been appointed by His Majesty's Minister at Peking to ensure that they shall not maintain or

re-establish any connection with Arnhold, Karberg & Co.of

China except in so far as may be specially permitted by His Majesty's Minister. The Board see no reason to doubt

that the steps taken will be effective in ensuring a complete separation between the two firma in China.

I

The Under Secretary of State,

Colonial Office,

S.V.

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