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Enclosure 2.
790
Secretary of State.
Translation of Code Telegram.
From.
To...
.Governor, Hongkong.
Date.
21st. December, 1915.
December 21st. Texas Oil Company are dissatisfied with
position as to Hongkong Agency. If they remove agengy from Sanders Aehders they will probably give it to Mitsui & Co. who as I understand have been given agency for North China formerly held by Jardine Mahbsson. It is very desirable to avoid this if possible and in dealing with Cheetham you should remember that Texas Company have confidence in him. Of course if you consider evidence that Cheetham is working for Reuter Brockelman over- -whelming he must not be allowed to retain agency but in dealing with situation you should take into consideration position of Texna Company and desirability of retaining this business for British Company. Then the arrangements are finally settled it would be well to issue some public notice of the fact and whatever is decided as to Cheetham notice should expressly state that His Majesty's Government approve of the agency being carried on by Sanders Rehders and Reiss on the conditions laid down. This is desirable because rumours have reached Texas Company, New York, that these two companies are to be treated as enemy companies in Hongkong. I have no particulars as to composition of Reise & Co. here. 22% of Messrs. Sanders Rehders' capital held by enemies but business has been investigated and no evidence of illicit trade discovered.
Bonar Law.
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