CO129-426 - Public Offices - 1915 — Page 552

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so low a margin is impossible in legitimate business

and that the firm must certainly have received

financial support from some outside source. The terms

of business quoted, and the prices at which the goods

were sold are supported by good evidence.

Mr. Girardet quotes a persistent rumour that the

German Consular Authorities in Hongkong and China

possessed a trust fund for the assistance of German

firms; it is supposed that this fund was used as a

bounty

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for German goode wherever possible; but in any

case for German business, that is to say for business

conducted by or through German houses. He believes

that it is part of an organised campaign for the

capture of trade by Germany in the Far East.

He has brought this to my notice in the hope that

the present liquidation work in Hongkong may possibly

throw some light on the alleged organisation. In

support of the idea he reminds me that failures of

German