CO885-(25-26) — Page 277

15

263

the Government has not seen its way to forbid this use of its own money by the firm in question.

6. With regard to the view that the winding-up of the solvent German firms must be of the same nature as the winding-up of a company or of a deceased's or bankrupt's estate, I am to point out that one essential difference is that in the latter cases it is necessary to realize all the assets for the purpose of distribution among the creditors or beneficiaries, whereas the underlying principle of the present liquidations is to carry out existing contracts and liabilities with the least possible disturbance to the trade of the Colony and the Empire and the world at large outside enemy territory. This object does not necessarily involve the turning into money of surplus assets, though in certain cases, such as that of surplus trade stocks, the complete liquidation of surplus assets, at fair prices, seems the best thing for all concerned.

7.

To carry the liquidations further, and to dispose unnecessarily of such forms of property as trade-marks and leases, would lay us open to the charge of unjustly invading private rights, and would tend to excite reprisals. On the particular subject of trade-marks I am to refer you to my confidential letter to the Honourable Mr. E. A. Hewett, the Chairman of the Chamber of Commerce, and to say that an answer to the practical questions raised therein is still awaited. 8. Your Committee speak of a war on German trade, and seem to suggest that the liquidators should treat it as part of their duty to wage such a war on the property entrusted to their charge. I am, however, to inform you that it does not appear to be any part of the policy of His Majesty's Government to attack private property, except in the case of goods at sea, where the liability to seizure is recog- nized by international law. Similarly, it has not been the policy of His Majesty's Government to attack the trade of enemy subjects by direct State action, except where such trade is a source of strength to the enemy in the present struggle. This is the principle which underlies the various enactments dealing with the subject of trading with the enemy. Seizure by British merchants of an opportunity of capturing German trade by ordinary commercial means different matter, and is a form of war on German trade to which no exception can be taken.

is a

9. On the subject of your remarks regarding the retention of the prisoners of war at Kowloon, I am to inform you that the fear of your Committee as to the danger of the presence of the camp is not shared by the responsible authorities. Apparently, however, the principal reason suggested for the proposed removal of the prisoners is in order that it may be made impossible or difficult for German merchants to resume their business here after the War. It is hard to believe that the removal of the prisoners from Hong Kong to another part of the Empire could have any such effect, and in any case I am to remind you that the expulsion and internment of the Germans was decided upon by His Excellency as a military measure. This measure necessarily involved the winding-up of the affairs of the enemy subjects so expelled or interned and the assumption of the custody of their property, but it was not aimed at the destruction of German trade. The magni- tude of the problems involved in this subject, and the far-reaching nature of the future effects action taken now, make it necessary to endeavour, as well as may be, to take a broad view, and not to be guided by merely local or temporary con- siderations Hong Kong has in the past been a distributing centre for South China of the commerce of the world. Even of the trade with the United Kingdom British merchants have in recent years handled only a portion, and to expect them to be able to deal with the whole of the world trade passing through the port, how- ever desirable that would be, seems too much to hope for, and the future of the Colony as a whole is more important than the immediate interests of certain portions of its population.

10. I am to add that a copy of your letter will be sent, as requested, to the Secretary of State for the Colonies, but the views expressed by your Committee do not appear likely to be entertained by His Majesty's Government.

I am, &c.,

The Secretary,

Hong Kong General Chamber of Commerce.

CLAUD SEVERN,

Colonial Secretary.

49333

SIR,

No. 16.

THE LONDON CHAMBER OF COMMERCE to COLONIAL OFFICE.

(Received 27th October, 1915.)

1, 2 and 3, Oxford Court, and 97, Cannon Street,

London, E.C., 26th October, 1915. Enemy Firms in the Far East.

I HAVE the honour to recur to my letter of 14th October* and your reply of October,* and to hand you further copy of a letter, dated 10th September. received from the Hong Kong Chamber of Commerce, together with copy of a letter addressed by that Chamber to the Hong Kong Government, having reference to the liquidation of enemy firms there. I may say that I am forwarding copies also to the Foreign Office and the Board of Trade.

Yours faithfully,

DEAR SIR,

CHARLES E. MUSGRAVE,

Enclosure in No. 16.

Secretary.

Hong Kong General Chamber of Commerce,

New Government Buildings, Des Voeux Road, Hong Kong,

10th September, 1915. My Committee direct me to enclose, for your information, copy of a letter addressed by this Chamber to the Hong Kong Government with the object of obtaining fuller powers for liquidators to deal with the staffs and property of alien enemy firms in liquidation in this Colony.

F. Anderson, Esq.,

Chairman,

SIR,

Far Eastern Section,

London Chamber of Commerce,

I am, dear Sir,

Yours

faithfully,

A. R. LOWE,

Acting Secretary.

c/o Messrs. Ilbert Anderson & Company, Limited,

London.

New Government Building,

Des Voeux Road, Hong Kong,

9th September, 1915.

I AM directed to place before you the views of the Committee to this Chamber on the subject of the manner in which the liquidation of the German firms in this Colony is being directed by the Hong Kong Government through the various liquidators.

In the first place, it is now over a year since the War started between Great Britain and Germany, and it will be a year at the end of next month since local Germans were interned and their businesses put into liquidation. I am to point this out, as, generally speaking, a year is commonly regarded as a reasonable time in which to wind up the affairs of deceased persons, bankrupt estates, and company liquidations. Sometimes this is impossible, but the tendency of British law and public opinion is to impress on executors, administrators, and liquidators the desirability of completing their duties within, or as near to, such a date as is here indicated.

The Committee do not see why the usual advantages following such an obliga- tion should not be impressed on the liquidators of German firms, or that efforts

* 47607.

PUBLIC RECORD OFFICE

Reference :-

CO.885/25

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH-NOT TO

PUBLIC RECORD OFFICE, LONDON