CO129-423 - Governor Sir May - 1915 [7-8] — Page 679

CONFIDENTIAL.

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44933

RF SEP 15

674

Sir,

HONGKONG,

GOVERNMENT HOUSE,

27th. August, 1915.

22 Mech (five) -

With reference to your telegram of the 27th.

March, and your Circular Despatch of the 11th. April, relating to

the removal of certain cargoes from enemy ships lying in neutral

ports, I have the honour to inform you that the course which is

being adopted here with regard to the sale of enemy cargo under

lien to licensed banks is to apply to the Court for an order

authorising the sale by the banks to be made to the Chinese buyers

for whom the goods were ordered, where such buyers exist and are

prepared to take up the goods at the contract price. It is con- -ceivable that in some cases a slightly higher price might be obtained by selling the goods in the open market, but this would create a bad impression among the Chinese dealers, and would expose to claims for breach of contract the liquidators of firms whose assets will in some cases be insufficient to pay the British

creditors.

2.

I shall be glad to know if you approve of this course being followed, and if not, I have the honour to request that your decision may be indicated to me by telegraph.

I have the honour to be,

Sir,

Your most obedient, humble servant,

Amay

Governor,

&c..

HE RIGHT HONOURABLE

ANDREW BONAR LAW, M.P..

&c.,

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