CO129-423 - Governor Sir May - 1915 [7-8] — Page 668

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Sir G. Fiddes

Jas 27/10/15

? Should we not have a fircular to other Cols where enemy property is being liquidation

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CONFIDENTIAL.

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Sir,

GOVERNMENT HOUSE,

HONGKONG. 27th. August, 1915.

663

I have the honour to ask for your instructions

as to the manner in which the claims of enemy creditors should be treated by the liquidators of German firms here in cases where the assets are or may be insufficient to meet the total liabilities

2.

It will perhaps be most convenient to take the simplest case, i.e., where the liabilities are all ascertained and the assets all collected, and where it is know that the asnets would be sufficient to pay the non-enemy creditors but insuffi- -cient to pay the total claims of non-enemy and enemy creditors. The question is whether in such a case the liquidators should pay the non-enemy creditors in full or should merely declare a dividend and retain in their hands or pay to a custodian, if one should be appointed, the amount of the dividends payable to the enemy

creditors.

3.

The only statutory enactment which seems to affect this question is sub-section 12 of section 5 of the Alien Enemies (Winding up) Ordinance, 1914, as enacted by section 7 of the Alien Enemies (Winding up) Amendment Ordinance, 1914. It might be argued on that sub-section that the liquidators are bound to provide for the payment after the war of claims by enemy creditors, though on the other hand it might be argued that the sub-section contemplates an actual distribution, and, as no payment can be made. to enemy creditors during the war, the intention was that such ol aims need not be provided for. It may therefore be necessary to: elucidate by further legislation the meming of this sub-section.

THE RIGHT HOYOUR ABLE

&c..

ANDRE BONAR LAW, M.P.,

&C..

&o...

4.