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observed the terms of the letters of lien which they have
given to British Bankers. The evidence that we have on
this point is not entirely conclusive, but it is a fact
that in most cases it has been impossible for the British
Bankers since the outbreak of war, to obtain re-delivery
in China of the goods financed by them under these
letters of lien. I do not know whether the same is true
in regard to any British firms in China. But even if it
were true that the obligations under these letters of lien
have in all cases been broken by the German fims, this
has certainly not been done with the consent or connivance
of the British firms to whom the letters of lien were
given.
Nor can it be said that the British Government,
by admitting the bills which financed these goods to the
privileges of the "cold storage" arrangement, was giving
"official approval" to the methods by which these trans-
actions were financed. The Government, indeed, has no
knowledge of the details of the transactions financed by
any of the "cold storage" bills. I fail to understand
therefore how the Committee of the China Association are
justified in their assertion that it is clear that "in
assisting the British Financial Houses, H.K.Government
are indirectly giving assistance to German enemy firms",
as I do not for the life of me see how these transactions
with German firms in China can be differentiated from
transactions with German finns in Germany.
The suggestion made in the closing remarks of the
Committee of the China Association that British financial
houses and Banks should be invital to give Mis Majesty's
Government
Government an assurance that they will, after the war, refuse
to give financial facilities to German firms in China, 18
one which, taken by itself, cannot possibly be entertained.
The question of the future commercial and financial relations
between this country and our present eneiales is one which
will doubtless receive the earnest consideration of His
Majesty's Government, but until a decision on this matter is
come to, it would be most unreasonable to expect British
Bankers and financial houses to give an undertaking during
the war that they will, after the war, refuse to give
financial facilities to German merchants in one particular
part of the world.
I should like to end this letter by saying that in
principle British Banks and financial houses would always,
I am aure, prefer to place facilities at the disposal of
British firms, rather than of firms of other nationality.
I do not know whether British firms in China have, or have not,
made use of these facilities to the same extent as German
firms; but if they have not, I presume this is due to the
fact that some of the British firms are so wealthy that they
are able to finance their business entirely out of their own
resources, while others are not of sufficient financial
standing to justify the extension to them of these facilities
Believe me,
B.P.Blackett Esqre.,
The Treasury,
Whitehall,
LONDON, S.W.
CB.
Yours very truly,
(5g1.) FREDK. HUTH JACKSON.
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