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ar
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C. D.
25 JUL
25
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19/7/17
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·20.7·17
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26.).
·CONFIDENTIAL -
+
Eric
JUL 17:
Sir,
Sor
47010
closures
182.
for
13390
76.
401
GOVERNMENT HOUSE,
HONGKONG. 2nd. June, 1917.
Referring to my Confidential Despatch of
the 18th. August, 1916, I have the honour to forward copies of further correspondence with the Hongkong General Chamber of Commerce regarding the advantages alleged to have been derived
by German Firms in Hongkong from the London Acceptance system.
2.
The Chamber's argument is that the German
Firms, by reason of their non-observance of the lion which was
a condition of the system, obtained from the system an unfair
advantage over their British competitors, who were prepared to
observe the lien; but the statement in support of this argu-
-ment, that had the lien been observed the bills would have
been running at least nine months before being taken up, is not very convincing, as firms of the financial standing of the majority of the German houses could have met the bills at maturity, whether or no the lien was observed. And, even if the German houses were forced to renew the bills, it is still
not clear, from the Chamber's reasoning, why the London Acceptance system should then be more expensive than the ordinary British system of drawing through Eastern banks.
3.
I see therefore no reason to change the
opinion which I expressed in the second paragraph of my
Confidential Despatch of the 9th. February, 1916, to the
THE RIGHT HONOURABLE
WALTER LONG, M.P.,
80..
&c...
effect