PUBLIC RECORD OFFICE
Reference :-
THILLICO.
885/25
18
2. As [Sir E. Grey is] [the Board of Trade are] [Sir J. Simon may be] [Mr. Chamberlain may be] aware, the Secretary of State has so far followed the principle that the private property of enemy subjects should be respected as far as military exigencies permit; and as it was found necessary for military reasons that enemy subjects resident in the Colonies concerned should be interned and their businesses were thereby left derelict, liquidators have been appointed to preserve the assets, dispose of stocks, collect the debts, and pay off the local creditors of such firms as far as possible.
3. The liquidators were restricted from alienating the goodwill or disposing of the land or instruments of business, such as lighters, tugs, etc., of the firms, except where it was required to do so owing to the cost of preserving them or where other considerations made it desirable to do so in the interests of the estate.
4. Mr. Bonar Law now considers that the circumstances which led to the adoption of the policy outlined above have been changed by the putting into force of the Trading with the Enemy (China, Siam, Persia, and Morocco) Proclamation of the 25th of June, which involves the probable destruction, to a considerable extent, of German trade in neutral countries in the Far East; and it may prove desirable to change the system of preservative liquidation of German houses in Hong Kong and the Straits Settlements into one of complete winding-up, so as to place difficulties in the way of the re-establishment after the War of German trade in these countries by the use as bases of houses in British Colonies.
5. If it is decided to make the liquidations complete at this stage the estates of German firms will suffer owing to the fact that their goodwill will have depre- ciated considerably since the beginning of the War; but this depreciation will continue to progress during the continuance of the War, and it is not improbable, in view of the hostile attitude of, e.g., the Hong Kong Chamber of Commerce, that after the War what remains of the goodwill of these German houses will be worth- less, except in the event of a decisive German victory or some extraordinary change of opinion among the British community in these Colonies; and in these circum- stances it is probable that, apart from the considerations referred to in the pre- ceding paragraph, it would be in the interests of the estates of these German firms to make their liquidation complete now.
6. In view of the important question of policy involved I am to suggest, for the consideration of [Sir E. Grey,] [Sir J. Simon,] [the Board,] [Mr. Chamber- lain, that the matter should be discussed by representatives of the Home Office, the Foreign Office, the India Office, the Board of Trade, and the Colonial Office in conference; and I am to inquire whether a representative of your Department could attend such a conference at this office, and, if so, when it would be most convenient for him to do so.
I am, &c..
H. J. READ, for the Under-Secretary of State.
19
I am instructed to inquire East. chiefly by the Java, China, and Japan line. whether this is the case, and whether, should you not be in possession of any definite information on the subject, you would kindly draw the attention of the Hong Kong Government to the matter and request that a careful investigation in regard thereto be conducted without delay.
(2) It is stated that the stocks of piece goods still on hand in Hong Kong, appertaining to the German firms there now in liquidation, are estimated at between four and five million dollars; that it is improbable these will be disposed of under another twelve months; and that the liquidators have, in fact, been instructed not to hurry the liquidation so long as they have funds in hand. The impression in the Colony seems to be that these businesses are to be kept alive until the War is over, and the Germans will thus be in a position, immediately they are released, to resume operations. It seems scarcely probable that this is the intention of the Hong Kong Government, but I should be glad if you could assure me that there are no grounds for the impression that the instructions of the Colonial Office not to hurry the liquidation have been given in the interests of the German firms.
(3) It is further alleged that the liquidators are forbidden to dispose of trade- marks and house property, etc., but to confine their operations to the sale of stocks. My members quite appreciate that there are good reasons for treating trade-marks and property in a different manner, but, in view of the action of the German Government in ignoring the principles of international law, they are anxious to learn whether the German firms in Hong Kong are to receive that consideration to which, in other circumstances, they would be entitled.
(4) I am also to draw your attention to the very earnest request of the Hong Kong Chamber of Commerce that the Germans interned there should be removed from the Colony, as their presence, besides being objectionable, enables them to carry on intrigues against this country through Canton, and, being on the spot, they will be in a position to resume business the more easily, after the War, than would be the case if they were transferred elsewhere.
tion is being conducted, I have extracted from the Hong Kong correspondence tion is being conducted, I have extracted the from Hong Kong correspondence particulars of certain cases to which I am to invite your special consideration, and The extracts are upon which I should be glad to receive your observations. enclosed.
It would be a great convenience if you could favour me with a reply to the foregoing by the morning of 24th instant, as an important meeting of Far Eastern! interests is to take place on the afternoon of that day.
I am, &c.,
CHARLES E. MUSGRAVE,
Secretary.
271
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO
53330
SIR,
No. 18.
THE LONDON CHAMBER OF COMMERCE to COLONIAL OFFICE.
(Received 18th November, 1915.)
[Answered by No. 19.]
1, 2, and 3, Oxford Court, and 97, Cannon Street,
London E.C., 17th November, 1915. Enemy Firms in China,
I AM instructed to refer to communications from the Hong Kong Chamber of Commerce, copies of which I sent you on 14th October,* and to invite your observations, for the benefit of the members of the Far Eastern Section of the Chamber, upon the following specific points mentioned therein.
(1) In the memorandum, dated 4th August, forming part of the papers in question, it is stated that considerable quantities of German manufactures are sent to Holland, there marked "Made in Holland," shipped thence by Dutch vessels to the Dutch East Indies, and subsequently distributed throughout the Far
* 47607.
Enclosure in No. 18.
EXTRACTS FROM CORRESPONDENCE FROM THE HONG KONG CHAMBER OF COMMERCE. F. Blackman & Company own considerable property with which the liquidators are not permitted to deal.
Bume & Reif (Austrian).—Reif is a naturalized British subject still carrying on the business.
Carlowitz & Company.-Rayner, originally a partner, is carrying on the business with a former employer [?employee] of Carlowitz & Company at Shanghai, and at first employed men who were rejected by Hong Kong Govern-
His money was left in Carlowitz & Company when he retired. Deutsche Asiatische Bank.-Liquidated by the Hong Kong & Shanghai Bank, with whom they are in close relations over Chinese Government finance.
ment.
Garrels Borner & Company.-Liquidated by W. G. Worcester, a brother-in-law of the senior partner, who is now carrying on the business as W. G. Worcester & Company.
Radecker & Company.--Chinese agents are still being paid their salaries by the liquidator.
Sander Wieler & Company.-J. H. Backhouse, who signed "per pro" for the firm, is carrying on their business under their old trade-mark.
Wendt & Company-Business carried on by W. A. Hannibal, a British subject and their former "per pro."
D 2