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26
istering the Government to mean, that we should be required immediate-
ly to pay the deficit shown in the liquidators' report as given in the
copy of Par.10 thereof attached to your letter. I cannot however im-
agine that it is contemplated that we should make immediate payment of
the very considerable sums named therein. We have as a matter of fact
already met a substantial part of these liabilities, and if all that
is meant is that we should specifically confirm our liability for the
balance in the event of this not being met out of the liquidation of
the old firm, we are of course prepared to do so, and I am in fact un-
der the impression that an undertaking to this effect has already been
given to the Officer administering the Government of Hongkong.
I would remind you that under the terms of the Bond given by
ua to R.M.'s Government, we are under obligation to make every effort
to secure the complete liquidation of the old firm as soon as possible
after the definite conclusion of peace, and, as partners in that firm
up to the outbreak of war, my brother and I are in any caso, without
giving any specific undertaking to that effect, lia Me for the pre-war
debts of the old partnership, should the assets on liquidation prove
insufficient to meet the claims of ouuditore. While therefore we are
perfectly willing to confirm our liability for the pre-war claims
against the Hongkong Branch of the old firm, this would almost appear
to be a work of supererogation. If it really is intended that wo
should be required to meet the Hongkong pre-war liabilities forthwith,
I would point out that the assete in Hongkong consisting of the trade
marks which we are asking to be assigned to us have no cash value, and
that all the old fim's realisable assets are situated in China proper.
Uf H.M.'s Government could see their way to make such representations