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at the time in his possession & quantity of stock for which he was accountable to the Shanghai Office, and a certain balance at the bank for which he was similarly accountable. In January, 1915, he went to Shanghai and saw the manager of the Shanghai office, and an arrangement was made by which Mr. Munton was allowed to trade with the stock which he had here belonging to the Shanghai office and to use the name of the Siemens China Co. Mr. Mmton accordingly pro- -ceeded to trade with the stock and cash in hand, and to order fresh stock from the two English Companies and from other non-
enemy sources. Owing to pressure of other work, and to the curious statue of the Siemens China Co. itself, matters were allow- -ed by the Government to take their own course.
6.
In June, 1915, Mr. Munton formed a company here for the purpose of carrying on this trade, and he adopted the name of the Siemens Electrical Engineering Company Limited, Siemens Electrical Engineering Company being a name which at one time was used by the organisation now known as the Siemens China Co. No capital was obtained from the public for this Company. With a view to the formation of this Company, two agreements were entered into, one transferring the undertaking of the Hongkong branch from the Siemens China Co. to Mr. Munton and the other transferring it to the new Hongkong limited company. I enclose copies of these two agree-
-ments.
7.
Soon after this the Trading with the Enemy
(China, Siam, Persia md Morocco) Proclamation, 1915, came into force, and the publication of the Proclamation led to Mr. Munton's writing to the Siemens China Co. at Shanghai a letter to which I shall refer below.
8.
Mr. Minton then continued to trade under the name of the above limited company, but from time to time various questions were raised by Censors and by the Consul-General at Canton,
chiefly arising out of the fact that the Siemens China Co. was on
the China Black list and that the branch at Canton, which was
entirely under Mr. Munton's control, was assumed to be a portion
of