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Canton Branch was landed at Yokohama where it is stored and "the Bank" permission to take over the bars held here on account of their Calcutta Office and set thein may want against the contract made with Chinese in Canton above stated leaving the bars in Yoko- bama to be held there on account of their Calcutta Office,
Letters and Telegrams. It is proposed to allow the Bank to deal with all letters com- ing in and going out, As to this we shall be glad to have instructions. We understand that no telegrams are accepted from or delivered to "the Bank or their staff. confirm this.
Please
C
General. All vouchers for all transactions will pass through the hands of "the Representative", who will see, as far as in his power so to do that no transaction goes through which could in any way be looked upon or be considered as new business, transactions under old contracts will be checked with the contract books of the bank.
The Honourable
The Colonial Secretary.
We have, &c.,
JOHNSON, STOKES & MASTER.
All
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telegrams in plain language for this purpose. These telegrams should be initialled by the representative". Drafts bearing dates before the declaration of war need not be referred to the Government unless the representative" is of opinion that they present some special features. All payments of drafts bearing dates after the declaration of war must be authorised by "the representative". Should any draft be presented bearing a date later than the date by which the notice to cease drawing might reasonably be expected to reach the other branches the matter should be referred to the Government,
Bar Silver-Application may be made later if permission should be required to take over the bars held here against the Canton contract.
The general intention of the permission conveyed in my letter of the 25th August is the liquidation of the business of "the bank" somewhat as if a solvent firm were being wound up in bankruptcy.
I shall address you later on the question of dealing with letters and telegrams, and in the meantime "the representative" may continue to act as he has been doing.
As a special exception, "the bank" will be allowed to pay to the Consul-General for the United States of America the expenses incurred by him in respect of his charge of the Imperial German Consulate so long as "the bank may remain in being here.
Enclosure in No. 18.
I have, &c.,
CLAUD SEVERN,
Colonial Secretary.
HONGKONG, 1st September, 1914. SIR-The representative of the Hongkong Bank in charge of the Liquidation of the Deutsch-Asiatische Bank requests that you will be good enough to advise him whether he is in the future to pay to the United States Consul in charge of the German Consulate a sum estimated to be about $1,200 a month (and this would include the August expendi- ture) being the rent of the offices and the wages of the Portuguese and Chinese staff and incidental expenses of the German Consulate."
If paid, the disbursement will create an overdraft which will accumulate month by month until after the war. Will you kindly let us hear from you as to this. An early reply is requested, as the American Consul is of course without funds to meet the Angust obliga- tions in respect of the German Consulate.
We have, &c.,
JOHNSON, STOKES & MASTER.
The Honourable
The Colonial Secretary.
Enclosure in No. 13.
COLONIAL SECRETARY'S OFFICE,
HONGKONG, 3rd September, 1914.
Deutsch-Asiatische Bank.
GENTLEMEN, I am directed to acknowledge the receipt of your letter of the 28th August and to express general approval of the proposed arrangements subject to the remarks made below :—
Current Accounts.-No lodgments must be accepted for current accounts.
Drafts Drawn on "The Bank", Hongkong.-These drafts may be paid as they come in, but immediate steps should be taken by "the bank" to notify other branches to cease drawing on the Hongkong branch. Permission will be given to "the bank to send
(
Messrs. Johnson, Stokes & Master.
Telegraphic.
No. 14.
From the Secretary of State to His Excellency the Governor.
11th September, 1914.
Proclamation of August 5th and August 12th relating to trading with enemy having in practice been found to be not altogether adequate, amended proclamation has been issued dated September 9th revoking proclamation of August 5th and paragraph No. 2 of procla- mation of August 12th which applied proclamation of August 5th to Austria-Hungary and substituting following provisions :-(begins)
1. The expression enemy country in this proclamation means the territories of the German Empire and the territories of the Dual Monarchy of Austria-Hungary, together with all the Colonies and dependencies thereof.
2. The expression enemy in this proclamation means any person or bodies of persons of whatever nationalities resident or carrying on business in the enemy country, but does not include persons of enemy nationalities who are neither resident nor carrying on business in the enemy country. In the cases of incorporated bodies enemy character attaches only to those incorporated in an enemy country,
3. The expression outbreak of war in this proclamation means 11 p.m. on the August 4th 1914 in relation to the German Empire, its colonies and depend- encies, and midnight on the August 12th 1914 in relation to Austria-Hungary, its colonies and dependencies.
4. From and after the date of this proclamation the following prohibitions shall have effect, (save so far as licences may be issued as hereinafter provided), and we do hereby accordingly warn all persons resident, carrying on business or being in our dominions:-
(i.) not to pay any sums of money to or for the benefit of an enemy; (ii) not to compromise or give security for the payment of any debt or
other sum of money with or for the benefit of an enemy;
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