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German firms in Hongkong this trust has been broken in
almost every case, The goods were handed over to the Chinese
buyer on 4 8 mon the credit, and as they were paid for, the
monies were placed to general account and used for the
carrying on of the business of the firm. Bills at maturity were met out of the general funds of the house (I may add or
in the alternative renewed). My Committee are informed that
in many cases the period of credit has been extended to 12
months and sometimes even longer. As the same German firms
carry on business at the principal Treaty ports in China, it
is probable that the same financial system prevails there.
The Report further states that the opinion amongst
British Merchants in Hongkong is that the Germans received
financial facilities from British Banks and Discount Houses
which could not have been obtained by themselves
statement is given with all reserve as being the opinion of
the majority of the Liquidators of the German Firms in Hongkong
who were appointed by the Hongkong Government.
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this
My Committee have good reason to believe that owing to
the complications arising out of the war, a large amount of bills accepted by financial houses against goods supposed to
be protected by letters of lien, but which have been delivered
on credit by German firms, have not been retired, and that
by the kindly intervention of the British Government, a portion,
at any rate, of those bills are being held by the Government "in cold storage" until the end of the war.
well founded;
My Committee would be glad to know if their belief is
if so it would seem to indicate official
approval of a system of finance which as described in Mr.
Ainscough's Report, can hardly be looked upon as sound or
legitimate.
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