CO129-421 - Governor Sir May - 1915 [3-4] — Page 344

T

Enclosure 6.

(2).

COLONIAL SECRETARY'S OFFICE,

REC

C. 339

22664

ReaP MAY 15]

HONGKONG, 30th October, 1914.

I.

I am directed to address you as Liquidator of the trade of

Messrs.

and to convey to you the following general instructions of His Excellency the Governor as to the manner in which the winding up is to be carried out :-

(1) The winding up is to be carried out as for the benefit of the entitled

persons to the proceeds of the trade, or to any property dealt with by you for the purpose of the winding up. In other words the interests of the alien enemies whose affairs you are winding up must be considered in every possible way. The object of deporting and interning German and Austrian subjects is not to obtain their trade.

The

(2) All proceeds realized in the course of the winding up must be paid into either the Hongkong and Shanghai Bank, the Chartered Bank of India, Australia and China or the Mercantile Bank of India Limited, ultimate disposal of any surplus which may remain after satisfying all liabilities must await such directions as may be given by the Governor or such provision as may be made by law for the purpose, but it is to be clearly understood that there has never been any intention on the part of the Government to confiscate any part of such surplus. The only reason for not paying the surplus to the alien enemies concerned immediately is the danger that the money might be of assistance to the enemy state during the war if that were done.

(3) The intention of the Ordinance of which a copy is attached is that the liquidators shall have full power to carry out all contracts previously entered into by the alien enemies before the war, and all contracts entered into by them with permission after the outbreak of war, except contracts of partnership, agency, and personal service.

(4) Subject to the preceding paragraph the intention is that the affairs of the alien enemies in question shall be wound up in much the same manner as if their affairs were being wound up in bankruptcy.

(5) Nothing however in the nature of a forced or immediate sale is intended, and care should be taken, both in the interests of the alien enemy firm and in the interests of trade in the colony generally, to avoid unloading a great quantity of goods on the market without due regard for the demand at the time.

(6) Any free goods left over towards the end of the winding up should, if the alien enemy firm wishes, be stored and held instead of being sold.

(7) Though no consent of the alien enemies concerned, or of any one outside the colony, is required for any act or omission, it would be advisable to consult the former partners or managers or assistants of the alien enemy firm on any matter of doubt, and on any matter on which they might have any special views or wishes. Some of these persons will be detained in Hongkong and will be available at any moment. Others would probably be in neighbouring ports and can by reached by letter. (8) It would be well to make arrangements that all letters and telegrams should

be delivered direct to you.

N. & Co., 991