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(Copy) C.33849.
KEMORANDUM.
Hongkong,
169
TE
13
4th August, 1915.
In order to show to what extent the Cermand are en- deavouring to carry on their trade, not only in China, but even in Hongkong, the enclosed memorandum has been drawn up, showing the changes made in nationality, or management, ・ of the firms in order to evade the terms of the king's Froclamation,
Une leading firm, Fossre. W.Leyerink & Co. in Changhai have given out that they have sold their business to a Chinese Syndicate, (under the control of their former Compradore) the office to be run by the German staff.
They have notified their friends in Lanchester and
elsewhere that all outstanding contracts have been transferred to the new firm and opened credite through Dutch banks to ensule the goods to be financed.
It is understood that other German firms are adopting the same system. Other firms again are declaring them-
selves as British, American, Dutch, etc., etc.
This of course affords an opportunity for british
suppliers who wish to do so, to evade the letter of
proclamation prohibiting trading with the enemy.
Another method of keeping alive German trade is by the shipping to Helland of considerable quantities of German
manufactures. These are marked as having been made in Holland and are then shipped by lutch vessels to the Netherlands India whence they are distributed throughout the Far Fast chiefly by Java, China & Japan Line.
Prior to Italy joining in thear it was found that certain German shipments were being sent to that country.
"hese
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