CO129-426 - Public Offices - 1915 — Page 193

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to shut down on such dodges; but it strikes me that,

without a King's Regulation or an Order in Council,

consuls pursuing this policy might find themselves

cast in heavy damages. On the other hand we have

proof that Rayner at least if not also Arnhold, of

Arnhold Karberg and Company, is to serve as a channel

for safe communication with Germany.

Arnhold says he has consulted the Board of Trade

and been told he need not advertise that he and his

brother are now a British firm, war having ended their

former partnership with two Germans, one at Hong Kong

and the other in Hamburg. In China the firm goes on

so far as the public see just as before as to Chinese

hong name, premises, staff, trade-marks. I had bidden

him start new books and become a Hong Kong Limited

Company notifying that the old firm's affairs were in

liquidation.

Our Company Law seems never to have contemplated

a state of war. If the China Companies Order in Council

is not quite shelved, don't you think we might add a

clause that no alien enemy can be director or officer, in

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such a company? We want that Order and the enforcement

of the general registration of companies more than ever

just now.

We discovered in Hong Kong an ex-German ship owned

by a limited company of Chinese with an absent German

as managing director, flying our flag and trading with

the German's branch firm in Kiungchow! But the Colony

does not see its way to intervene.

This means similar

"British" Companies can buy German prizes and ships

refuging in neutral ports.

such

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