CO129-425 - Governor Sir May - 1915 [10-12] — Page 48

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agent for Siemssen & Co., and I have not been led to change this

belief by conversation I have had on the subject with my former

United States Colleague who is now on furlough. I do not deny that Mr. Kahl still holds his position as agent but I regard his firm

at Canton as a "fence" for Siemssen & Co. to ■ enable them to

carry on their American and European business during the war. I have already reported to His Majesty's

Minister at Peking that I have excluded the name of A. J. Kahi

from the White List and placed it on the Black List.

The goods to which reference is made in the

latter of October 13th. from the United States Consul-General at

Hongkong were returned here and Messrs. Siemssen & Co. experienced

considerable difficulties with the native dealers in connection therewith, as the latter had not received payment and regarded Siemsson & Co. as the actual buyers. I understand that a settle- -mast has now been effected and the Chinese Maritime Customs have

granted a rebate of import duty and a drawback on re-exportation of these goods. The settlement with the native dealers and the xogakixkiam negotiations with the Customs were conducted by Siemssen & Co. On August 26th. last the Japanese Consul-General informed me confidentially in conversation that the local manager of Siemssen & Co. had approached the Bank of Taiwan to negotiate bills dram by Kahl. The bank manager demurred as he did not know this name, whereupon Mr. Lund admitted that Kahl was onŷ a cover for Siemssen & Co. who would accept full responsibility and guarantee payment of all such bills. The Bank of Taiwan, however, declined the business. I alluded to the matter in conversation with the Japanese Consul-General yesterday, and he confirmed the accuracy of his information.

I would also add that the local manager of

the International Bank (American) has informed me confidentially that he has declined the request of Messra. Si emasen & Co. to nego- -tiate Kahl's bills as he considered that the business of the

latter was in reality German and his instructions from his Head

Office