267
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My lords note the decision arrived at by the Secretary of State in favour of the non-conversion of the Four-and-a-half per cent. Loan. Mr. Long has no doubt not overlooked that this decision involves not only loss of interest to the funds but also capital loss to the ultimate beneficiaries in the event of the stock having to be sold before it becomes repayable. As the great bulk of the Four-and-a-half per cent. Loan is likely to be converted, and the market in the remainder of the issue may be a narrow one, the loss may be considerable.
In view of these considerations, my lords for their part are exercising the cou- version rights in respect of all funds for which they themselves are the trustees.
I am, &c.,
M. G. RAMSAY.
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2. As there appears to be a strong feeling in certain quarters in the Colony on the subject of the entire expropriation of the interests of former German residents in every kind of property, I deemed it desirable to inform the Committee of the Chamber of Commerce, at a confidential meeting with the members, of the purport of so much of the second paragraph of your Confidential despatch of the 10th of June, 1915,* as related to the limits placed upon me in legislating on the subject of the liquidations.
I have, &c.,
F. H. MAY,
Governor, &c.
PUBLIC RECORD OFFICE
TULLUT
Reference :-
C. 885/25
| COPYRIGHT PHOTOGRAPH-NOT TO
38.
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE REPRODUCED PHOTOGRAPHIC-
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7796
No. 13.
COLONIAL OFFICE to TREASURY.
SIR,
Downing Street, 13th February, 1917. I AM directed by Mr. Secretary Long to acknowledge the receipt of your letter of the 12th instant* with regard to the conversion into Five per cent. War Loan of the Four-and-a-half per cent. War Stock and the Five per cent. and Six per cent. Exchequer Bonds held by the Crown Agents for the Colonies on behalf of the Enemy Surplus Assets Accounts of the various Colonies and Protectorates.
2. In view of your letter the Crown Agents have now been instructed to apply for the conversion of the Four-and-a-half per cent. War Stock and to allow the Five per cent. and Six per cent. Exchequer Bonds, which will presumably have to be realized during the next few years, to mature.
7796
GENTLEMEN,
No. 14.
I am, &c.,
G. GRINDLE.
COLONIAL OFFICE to CROWN AGENTS.
Downing Street, 13th February, 1917. In reply to your letter of the 15th ultimo,t I am directed by Mr. Secretary Long to inform you that he approves of your taking steps to convert into the new Five per cent. War Loan the Four-and-a-half per cent. War Stock. 1925-45, which you hold on behalf of the Enemy Surplus Assets Accounts of the various Colonies and Protectorates.
2. Mr. Long has decided that the several issues of Exchequer Bonds held on behalf of these accounts should not be converted.
I am, &c.,
49524
SIR,
EASTERN.
No. 15.
HONG KONG.
G. GRINDLE.
THE GOVERNOR to THE SECRETARY OF STATE.
(Confidential.)
(Received 27th October, 1915.)
[Answered by No. 21.]
Government House, Hong Kong, 23rd September, 1915.
I HAVE the honour to transmit, for your information, the enclosed copy of a letter from the Hong Kong General Chamber of Commercet on the subject of the winding-up of the affairs of former German firms in this Colony, and of the reply which I have caused to be addressed to the Chamber.
* No. 12.
† No. 7.
Dated 9th September: enclosure in No. 16.
SIR,
(Confidential.)
Enclosure 2 in No. 15.
Colonial Secretary's Office, Hong Kong, 23rd September, 1915.
I AM directed by His Excellency the Governor to acknowledge the receipt of your letter of the 9th of September relating to the winding-up of the affairs of the former enemy firms in this Colony and to the internment in the Colony of prisoners of war.
2. Put shortly, the main positions and contentions of the letter seem to be as follows:-
3
That the Hong Kong Government has discouraged a rapid winding-up; That the winding-up is being unduly prolonged;
That the winding-up of the enemy hrms in Hong Kong is of the same nature as the liquidation of companies and of the estates of bankrupts and deceased persons;
(d) That advantage should be taken of the expulsion and internment of the Germans to carry out a policy of permanently banishing them from the Colony, and that such an end could be attained by turning all their surplus property into money and by removing the German prisoners.of war to Australia.
With regard to the allegation that celerity has been discouraged, I am to assure you that there is no foundation whatever for the impression, if, indeed, it exists, that this Government is averse, or even indifferent, to the speedy completion of these liquidations, the termination of which it would hail with the greatest satisfaction.
4. With regard to the suggestion that the liquidations are being unduly pro- longed, your Committee will probably agree that it would have been impossible to wind up the affairs of the larger German firms in a year without such a repudia- tion of contracts as would have inflicted loss and inconvenience on British subjects and neutrals, and would have invited claims for damages to such an extent, in some cases, as to have jeopardized the interests of British and other non-enemy creditors. It must be remembered, too, that the existence of a state of war has put obstacles in the way which would not have existed in a state of peace. Cargoes shipped for Hong Kong before the war still lie in the Philippine Islands, in the Dutch East Indies, at Alexandria, and even in Italian ports, and goods ordered from the United Kingdom more than a year ago are still awaiting ship- ment. Heavy stocks were held here at the outbreak of war, and trade was depressed. British firms were suddenly called upon to assume the labour of winding-up the affairs of a large proportion of the merchants of the Colony, a work which in some cases must have severely taxed the staffs available, and that the results achieved up to date have been so large and so good is due to the way in which the liquidators responded to the task, and to the appreciation of their duty to all parties concerned which they displayed. Should any definite instances of undue delay be brought to the notice of, or be discovered by, the Government steps will be taken to accelerate matters.
5. As regards the allegation that members of the former staffs of firms in liquidation are being unnecessarily retained by the liquidators, I am to observe that the Government is not aware of any such case. It is true that in one case the former Chinese brokers of one firm are, at the request of the firm, receiving half salary, although they are doing practically no work, but the firm is solvent, and
* 26020.
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