CO129-423 - Governor Sir May - 1915 [7-8] — Page 192

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"Law eɗt

(5) Will transactions with companies carrying on

business at Shanghai which are German in all but their Hongkong registration be legal?

(6) Will correspondence (a) if it is from neutral

countries and (b) if it is from the British Dominions and does not

relate to transactions specifically prohibited be transmissible to

Germans in China?

(7)

Will liquidators of German firms in Hongkong be

able to correspondence with fermans in China with regard to the

liquidation, and will it be possible for persons in British Dominions

to correspond with germans in China with regard to the suspension

of contracts or other arrangements in the case of unfinished trans-

actions? There appear to be no local powers to grant licences ES

there are under the provisions of the former proclamation.

(8) The construction of the proclamation primarily

concerns the British Authorities in China but it also concerns this

Colony where the directions in many cases have to be given for acts

to be done in China. I would ask that any instructions given to më

may be also given to the British Authorities in China and vice versa.

(9) In enforcing the proclamation there will be at

least three main difficulties:-

(a)

Allies may carry,

dermens in China.

finance and insure exports by

(b)

(c)

Imports by Germans in China may be transferred

to Chinese firms consisting of the former compra

dores of the German firms credits being opened

by the latter with neutral banks.

A difficulty will be firms established by British

subjects who were formerly partners or employees

in the German firm, Examples are Charles Rayner

& Co. and H.E.Arnhold & Co. who are recognised as

British firms at Canton.

In this telegram Germans in China includes all

persons of enemy nationality in Chine or Siam.

MAY