}
C
413
but it was intimated that he would be allowed to draw a small sun
always
monthly. Permission has of course/been refused for payments to alien enemies in the strict sense of that term as meaning persons with an enemy trade domicile. On the other hand, permission has been freely given for payments to enemy subjects who are not alien enemies in the above sense, e.g. to German firms established in the Treaty Ports of China. As trading with such persons and firms is not illegal, even if they are merely branches of firms in enemy territory, it would appear to be impossible to justify a general refusal to allow the payment of debts due to them. Perhaps the most important class of such payments is that of dividends on shares in Hongkong Companies payable to enemy subjects of non- -enemy commercial domicile.
The practical position of branches in neutral countries of firms in enemy territory is full of difficulty, especially under modern conditions of commerce and finance, but
to the law is clear as their general non-enemy character, though what appear to be inroads into the old doctrine as to trade domicile have been made in the three cases of (a) branches in neutral countries adjacent to enemy territory, (b) insurance business, and (c) banking business.
It is the present intention to retain in the Colony until the end of the war the surplus assets of the liquida- -tions under the principal Ordinance, and not to pay any such surplus assets to the Treaty port branches of the firms wound up here. I think that this policy may be justified on the ground that such surplus assets, no longer capable of being used for trading in the Colony, would naturally either be remitted to the head
office in enemy territory or at least would go to swell the credit of the firm in enemy territory.
The question of giving liquidators a power of disclaimer has been under consideration. In the winding up con- -templated by the Principal Ordinance two principles were held in
view, (a) that current contracts should be carried out as far as
possible in order to avoid commercial dislocation, and (b) that
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