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wages to remain in the employ of the liquidated firms either marking time or helping only halfheartedly in the liquidation. Many of these men would be gladly taken on by the British firms who are trying to cope with the trade formerly done by German houses but until the Chinese mind can be thoroughly disabused of the idea that the Government is in favour of helping the German firms to start again where they left off it is impossible to expect British firms to increase their business. Chinese capital is being withheld from trade to the loss of the Colony and the only way to stop this is to instruct the liquidators to discharge such of the employees, brokers, and other intermediaries as are not actually necessary and to fix their remuneration accordingly and that under no circumstances should German capital be used to subsidise such men so that they can afford to wait until the Germans are disinterned.
The question of the advisability of the retention
of the interned German prisoners in Hunghom hinges also on this subject of liquidation. To onlookers it is very credit able to the energy of the Britishers in this Colony, and the officials who will naturally reap the reward of such patriotic energy, that the burden and expense of guardian- ship should have been so well and truly done as their share in the general self-sacrifice. No one questioned or grudg- ed the steps taken in the early months but the time has
arrived when my Committee think representations should be
made to the Home Government that the retention of the 300
odd prisoners in the centre of this small colony is a source of great danger to the peace and contentment of the inhabit- ants. They are surrounded by a large neutral native popu-
lation who neither understand the quarrel nor see why they
should not sympathise with them, help them to escape, or
convey
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