PIL
Telegraphic.
— 6 —
No. 10.
From the Secretary of State to His Excellency the Governor.
27th August, 1914.
With reference to your telegrams of 15th and 24th August, I am advised that if firma with headquarters in hostile territory have branches in British territory trade with the branch is permissible as long as trade is bona fide with the branch and no transaction with the head office is involved. If therefore local firms referred to are bona fide branches established in the Colony or if trade with them involves uo transactions with enemy territory it does not appear that special restrictions are necessary. It is for you to decide whether in any particular case restrictions are necessary in order to ensure that no transactions with the enemy territory takes place. In this respect proposals contained in your telegram of August 15th appear to be generally sound. Extension of your proposals to goods due to arrive if shipped before outbreak of war should be of course subject to jurisdiction of the Prize Courts where involved. Above principles apply to the persons named in the last part of your telegrain of 24th August subject to any special restrictions which may be found necessary to impose on such persons.
Telegraphic.
No. 11.
28th August, 1914.
From the Secretary of State to His Excellency the Governor.
Your telegram of 26th August as to trade with German and Austrian firms full information included in separate telegram being sent shortly.
Confidential.
No. 12.
(
C
C
-7-
3. The general application of your instructions, with the assistance of the above principles, appears from the two letters copies of which are annexed. That of the 28th August refers to transactions already embarked upon, in which persons in enemy territory are interested, and that of the 29th August to new business to be entered upon by enemy subjects allowed to remain in the Colony. The letter of the 28th August is only a model and the permission referred to has been given in other cases as well as to the firms specified therein. I may mention that the reservation of the right of capture at sea had, before the arrival of your telegram, been inserted in the draft letter which had been prepared in anti- cipation of your approval of my proposals.
4. Enquiries are constantly being received with regard to particular transactions and these are dealt with as they arise in accordance with your instructions and above principles.
5. The following general points are now under consideration :-
(a.) The execution of export contracts already entered into by firms which have
partners in enemy territory.
(b.) Certain cases where it is possible that some such firms have been carrying on
business under the names of British employees.
(c.) The rights of neutral banks in view of the conditions contained in the letter of
the 28th August annexed.
The last is the only point which is likely to cause any difficulty, and that will doubt- less be satisfactorily arranged.
6. The reason why the rights of such banks were not dealt with before is that in the information received from the German firms no mention was made of any liabilities to any banks except the three British banks referred to in the letters annexed. The only bank which has raised any objection is the Nederlandsche Handel Maatschappij.
7. I am informed that as the German firms are financed almost entirely from Europe, and will not be able to obtain credit from the banks locally, the practical result of the con- ditions laid down in the letter of the 29th August will be to stop almost completely, at least for the present, any future trading by the Gerinan subjects who have been allowed to remain here. This result, whether desirable or not, appears to be inevitable. Hungarian commercial interests in the Colony appear to be of little importance,
I have, &c.,
Austro-
From His Excellency the Governor to the Secretary of State.
GOVERNMENT HOUSE, HONGKONG, 7th September, 1914.
SIR-With reference to paragraph 7 of my despatch of the 26th of August, I have the the honour to report that the question of the German and Austro-Hungarian firms established in the Colony, which is of much importance on account of the number of the German firms and the British allied and neutral interests involved, has been dealt with in accordance with the general instructions contained in your telegram of the 27th August, which was in reply to my telegrams of the 15th and 24th August.
2. The main principles which have been relied upon in working out and applying these instructions may be shortly stated as follows:-
(a.) Enemy subjects allowed to remain in the Colony are, for sunch time as they in
fact stay, placed in the same position as other resident aliens.
(b.) Such enemy subjects are of course subject to the general law against trading with the enemy, and accordingly they must not, without permission, take part in any transaction which is for the benefit of any person in enemy territory. (c.) In order that firms which are branches of firms in enemy territory, and firms which have a partner in enemy territory, may complete transactions embarked upon before the war, special permission is necessary.
Note. (i.) Such permission was thought highly desirable here owing to the magnitude of the British allied and neutral interests involved, apart from any other considerations.
(ii.) It was considered that practically in no local case could it be certain that such current business involved no transaction with enemy territory, because the German firms are all financed from Europe.
(d.) No money must be remitted to enemy territory during the war,
f
The Right Honourable
Lewis Harcourt, M.P.,
&c.,
&c.,
&c.
Enclosure in No. 12.
F. H. MAY, Governor.
COLONIAL, SECRETARY'S OFFICE,
HONGKONG, 29th August, 1914.
GENTLEMEN,As it is understood that you act for various persons in this Colony of German and Austro-Hungarian nationality, I am directed to inforin you, for the purpose of communication to any of your clients who may consult you on the point, that any enemy subject who is allowed to remain in the Colony will, during good behaviour, be permitted to trade here under the following conditions:-
(4.) He must not enter into any transaction which may, either wholly or in part, be for the benefit of any person residing, carrying on business, or being, within the German or Austro-Hungarian Empire, whether such person be a former partner
or not.
(6.) He must not, without permission previously obtained from this Government, take part in any transaction relating in any way to any goods or contract in which any person residing, carrying on business, or being, in the German or Austro-Hungarian Empire, may have any property or interest.
320
|
No comments yet.
Private notes are available after approval.