272
53330
22
No. 21.
HONG KONG.
THE SECRETARY OF STATE to THE GOVERNOR.
(Confidential.)
SIR,
Downing Street, 28th January, 1916. I HAVE the honour to acknowledge the receipt of your Confidential despatch of the 23rd September* regarding the liquidation of enemy firms, and to request that you will furnish me with a report on the following matters arising out of correspondence with the London Chamber of Commerce in connexion with a memo- randum dated the 4th August furnished by the Hong Kong Chamber of Commerce.
(1) It is stated by the Hong Kong Chamber of Commerce that German trade is being kept alive by the shipping to Holland of considerable quantities of German manufactures; that these are there marked as having been made in Holland, and are then shipped by Dutch vessels to the Netherlands Indies, whence they are dis- tributed throughout the Far East, chiefly by the Java, China, and Japan line.
(2) Mr. A. Bume is stated to have "comparatively recently" acquired about a half share in two British vessels, the "Devawongse" and "Phranang," and to have now sold these vessels to a syndicate of Hong Kong Chinese.
(3) Deutsche Asiatische Bank. It is stated that the manager should have been interned, but that for some unexplained reason the civil authorities released him; that he proceeded to New York, where he was engaged for some time in making gold shipments to Germany, and that he has since returned to Shanghai, where he is energetically looking after German interests.
(4) Ulderup & Schulter.-It stated that this firm was a branch of Jebsen & Company, and is bankrupt, and that the deficit should be provided out of the funds of Jebsen & Company.
I have, &c.,
A. BONAR LAW.
23
[To Straits Settlements only: See no reason why these instructions should not be applied to firms mentioned in your Confidential despatch of the 17th November.*
To Ceylon only: Freudenbergs.-It is desirable that import business should be liquidated like other firms on above lines, but mills may have to be treated separately, as they should not be sold to any person not considered competent to work them. They may be worked by Government, if necessary, until suitable purchaser is found, or acquisition by Government might be considered.]
i approve of your passing necessary legislation as soon as possible. You should report by telegraph what steps are being taken and any difficulties which may arise; similar instructions are being sent to [Ceylon and Straits.] [Ceylon and Hong Kong, and similar action should be taken in Federated Malay States if and as far as necessary.] [Hong Kong and Straits.]
Despatch† follows by mail.
I am considering whether arrangements should be made to allow creditors of head offices in enemy territory to prove against assets in the Colony of liquidated branches, and whether assets of branches in different Colonies of same firm should be treated as common fund for payment firm's debts.
I will address you shortly as to this.-BONAR LAW.
67853
No. 23.
STRAITS SETTLEMENTS.
THE SECRETARY OF STATE to THE GOVERNOR. (Sent 6.25 p.m., 21st February, 1916.) TELEGRAM.
My telegram 10th February your despatch 15th December* [ ?17th November]. Singapore Oil Mills will, of course, be kept running, and should be taken over by Government, if necessary, until suitable purchaser can be found.- BONAR LAW.
3524
No. 22.
HONG KONG STRAITS SETTLEMENTS: CEYLON. THE SECRETARY OF STATE to THE GOVERNORS.
(Sent 7.15 p.m., 10th February, 1916.)
TELEGRAM.
[Answered by Nos. 29 and 36.]
It has been decided by His Majesty's Government that it is desirable that all enemy firms in the Colony should be completely liquidated; goodwill, trade-marks, land and buildings, and other permanent assets of firms should be sold, but not private estates of individual partners. [To Hong Kong only Patent Office will be consulted as to proper method of sale where there is a joint interest in a trade- mark between enemy and British subject.] Collection of debts should be as complete as possible, but need not be hurried if likely to damage British, Allied, or neutral interests.
Claims of British, Allied, and neutral creditors should be paid if possible in full, no provision being made for enemy creditors. Any balance remaining should be retained until end of war in hands of Custodian of Enemy Property, legislative sanction being obtained if necessary.
In order to expedite liquidation liquidators should have power to disclaim contracts, subject to right of other party to prove in the liquidations for any damage which he may suffer through the disclaimer. All contracts, except such as relate to goods actually shipped to Colony but not yet delivered, should then be disclaimed. After liquidation no action should be allowed to be brought in the Colony against liquidated firm or company or any of its members or remaining assets or any official or other person concerned in liquidation, for any debt incurred by it prior to liquidation.
3524
No. 24.
CEYLON.
THE SECRETARY OF STATE to THE ACTING GOVERNOR. (Sent 12.35 p.m., 22nd February, 1916.)
TELEGRAM.
[Answered by No. 32.]
In arranging system My telegram 10th February, liquidation enemy firms. of liquidation it will be desirable, unless you see any objection, to provide, in case of firm having head office in enemy territory, including Siam and China, that all debts incurred by firm, whether by or on behalf of branch in the Colony or other- wise, shall be allowed to rank against assets in the Colony. All debts should rank pari passu unless you think it important that debts incurred by or on behalf of branches in the Colony should be given priority. Neutral creditor should not be allowed, however, to claim in respect of debt incurred by head office or exhausted remedy in enemy branch in enemy territory until he has territory. It is also desirable that, where same enemy firm has branches both in Ceylon and in Hong Kong or the Straits, surplus of assets of any branch showing surplus should be available to make good deficit of any branch showing deficit. have instruoted Governor Hong Kong and Governor of Straits to communicate to Despatcht follows.- you views on this point and arrange convenient system. BONAR LAW.
* No. 20.
† No. 27.
No. 22.
* No. 15.
PUBLIC RECORD OFFICE
| 9
Reference:
CO885/25
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH—NOT TO