367
PUBLIC RECORD OFFICE
Reference :-
885/25
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-
COPYRIGHT PHOTOGRAPH-NOT TO
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section 3 (e) in any case, and, if he and his advisers think a case can be made out, álso under section 3 (b) or 3 (c). The Governor will at the same time be authorized to take action against the other German firms in question.
6. Mr. Bonar Law will be glad to be favoured with a reply to this letter at Sir E. Grey's early convenience.
28007
No. 176.
TRINIDAD.
I am, &c.,
G. GRINDLE.
THE SECRETARY OF STATE to THE GOVERNOR.
(Confidential.)
[Answered by No. 179.]
SIR,
Downing Street, 25th July, 1916. I HAVE the honour to acknowledge the receipt of Mr. Knaggs's Confidential despatch of the 19th of May,* regarding the liquidation of enemy firms in Trinidad. 2. The despatch contains information of importance with regard to the control which was, before the outbreak of the War, being obtained by Messrs. Neubauer & Company over the cocoa trade from Trinidad. I observe that it is not possible to discover how much of the cocoa shipped from Trinidad actually went to Germany, but it is plain that Messrs. Neubauer, with the assistance of Messrs. Huttenhein, of the Dresdner Bank, were not only gradually securing a financial control of the Trinidad supplies but had already actually acquired the ownership of a number of cocoa estates, which had no doubt been previously mortgaged to them in respect of advances. I regard it as important that advantage should be taken of the present opportunity to put an end to this condition of affairs.
3. This might, of course, be done by transferring Messrs. Neubauer & Com- pany's business to the Liquidating Committee and allowing them to sell the estates in the ordinary way. I observe, however, that the Chairman of the Liquidating Committee apprehends that if these assets are sold at the present time the amounts which they would fetch would be very much under their real value. I desire, if possible, to avoid such a result, and I would therefore suggest, for your consideration, whether it might not be possible to hand over the firm's business to the Liquidating Committee and for your Government to take over these estates from the Com- mittee at a fair valuation. If this were done the estates could either be let to planters or they could be worked by the Government until the financial conditions enabled a sale to be effected at a reasonable price. This course would have the further advantage of being more consistent with the policy which has been adopted else- where with regard to enemy-owned plantations, as explained to you in paragraph 4 of my Confidential despatch of the 18th of February.†
4. With regard to the mortgages held by Messrs. Neubauer & Company, these might either be taken over by the Government, or, if a sale could be effected at a reasonable price, they might be sold in the ordinary way.
5. As to the shares held by Messrs. Neubaner & Company in other concerns: the Trinidad Cocoa and Coffee Company, referred to in paragraph 7 of enclosure 3 of the despatch, should be liquidated, the estates held by it being dealt with in the same manner as those held by Messrs. Neubauer & Company. The shares held by Messrs. Neubauer & Company in the Trinidad Cocoa and Coffee Company, Limited, see paragraph 6 of enclosure 3 to your despatch, should, unless the Company can be liquidated in the ordinary way, be sold to British purchasers under a procedure similar to that which is adopted in this country under section 4 of the Trading with the Enemy Act, 1916, as indicated in my Circular despatch of the 15th of July on that subject. The licence granted to Mr. de Verteuil to work Messrs. Neubauer's estate would, of course, have to be revoked.
6. There remains for consideration the question how Messrs. Neubauer & Company are to be prevented from resuming after the War their financial opera- tions in the Colony. The sale or acquisition by the Government of their estates and mortgages might not suffice to prevent them resuming operations, and it is
+ 29709.
* No. 174.
† No. 171.
213
obviously desirable that some arrangements should be made before the end of the War which would remove all likelihood of their resuming operations in the Colony. 7. I have considered whether it would be desirable to take this opportunity to institute in the Colony some Government or Co-operative Bank for financing the local cocoa industry, but, although the present system upon which that industry is conducted does not appear to be a very satisfactory one, local conditions are not, so far as I can judge, favourable to the carrying out of any such project, and it appears to me that the object which I have in view might more easily be obtained if arrangements could be made with the Cocoa Planters' Association, which appears to be the principal supporter of Messrs. Neubauer & Company, to transfer their business to one or more of the British banks now operating in the Colony. It occurs to me that it might be possible to induce all the banks to combine together to take over the Association's business, and other business formerly done by Messrs. Neubauer & Company, and to offer the planters such terms as might make it worth their while to agree to give their business to the combination for a prolonged period.
8. Should you think this suggestion feasible it would perhaps be desirable for you to approach the local representatives of the Association and banks with a view to making the necessary arrangements, or. should you think this course undesirable, I would, on receiving a request from you, cause negotiations to be opened with the managers of the various banks in this country.
9. With regard to the other cocoa estates held by enemy subjects in the Colony, I observe that those belonging to Messrs. Collignon & Reimer are mortgaged to British subjects, who are apparently in a position to realize their securities. From despatch No. 326, of the 21st of August, 1915, it appears that no action has been taken to prevent or delay the realization by mortgagees of their securities in Trinidad. This being so, I see no reason why the mortgagees of these properties should not realize their securities should they wish to do so. Should they not take this course it is for consideration whether the estates should be taken over by the Government in the same way as the estates belonging to Messrs. Neubauer. The mortgages held by Mr. Reimer might be sold in the ordinary way. 10. With regard to the cocoa estate of Mr. Meyer this appears to be quite distinct from the assets of A. S. Laing & Company, and should not, I think, be sold unless the Government decide to take it over with the other estates above mentioned. 11. I observe from paragraph 14 of the first enclosure to Mr. Knaggs's despatch that Mr. Slyne anticipates some difficulty in giving title to Messrs. Neubauer & Company's estates. Any difficulty of this kind which may arise in connexion with this or other estates could, if necessary, be got over by special legislation.
12. With regard to real property other than cocoa estates, it does not appear to me that the circumstances would justify a departure from the policy hitherto adopted in regard to private property not involved in any commercial business. Unless, therefore, any difficulty is being experienced in keeping up the house property belonging to Mrs. J. A. Scheerer, I think that this property should not be sold.
14.
13. As to the mortgages held by Mr. Hoffman, Messrs. Wessels Brothers & Von Gontard, and Mr. Holler, if these are part of the assets of liquidated firms they may be sold in the ordinary way. Otherwise I consider that they should be left alone.
You will have seen from my Circular despatch of the 15th July, to which reference is made in paragraph 5 above, that shares held by enemy subjects in British companies may be disposed of, even though they do not form the assets of any liquidated business. If, therefore, the shares held by Mr. Hoffman are shares in companies registered in Trinidad, these can be sold to British subjects under the procedure outlined in my Circular despatch.
15. I shall be glad to learn as soon as possible the action which you decide to take with regard to the various points raised in this despatch, and in particular with regard to the business formerly carried on by Messrs. Neubauer & Company.
I have, &c.,
A. BONAR LAW.
* 41307.
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