CO129-421 - Governor Sir May - 1915 [3-4] — Page 79

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importance of trade marks in the Chinese market is very great.

The arguments in favour of a policy of licensing is that British

firms interested in the marks could thus continue to sell their

products here under the old marks and that otherwise they would be driven to build up new marks and would in the meantime be exposed to the competition of Japan and the United States of America. There is also the local danger that trade might be driven

from Hongkong to the Treaty Ports.

as follows:-

The arguments against this policy are shortly

(a). There is a danger of incurring the imputation of

a confiscatory policy.

(b). There is therefore a danger of exciting reprisals. (c). There is a danger of complications with the

Chinese Authorities.

(d). The marks would be kept alive for the benefit of

the enemy firms who would resume the trade on the conclusion of peace.

(e). Most of the local merchants say that they would be

unwilling to accept such licences, and the

exporters in the United Kingdom might thus

find a difficulty in obtaining agents here. (f). No information has reached this Colony that any

licences to use enemy trade marks have yet

been granted in the United Kingdom in spite of

powers taken, and there is some evidence

which suggests that in any case the only licences contemplated in the United Kingdom were licences to use trade marks employed in

connection with patented articles.

(g). It is said that the Hongkong market has been over-

-sold, owing to the long credit system

introduced by the German merchants with the

aid of the Manchester and Bradford export

firms,