CO129-430 - Others & Individuals - 1915 — Page 156

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German firms in Hongkong this trust has been broken in

almost every case, The goods were handed over to the Chinese

buyer on 4 8 mon the credit, and as they were paid for, the

monies were placed to general account and used for the

carrying on of the business of the firm. Bills at maturity were met out of the general funds of the house (I may add or

in the alternative renewed). My Committee are informed that

in many cases the period of credit has been extended to 12

months and sometimes even longer. As the same German firms

carry on business at the principal Treaty ports in China, it

is probable that the same financial system prevails there.

The Report further states that the opinion amongst

British Merchants in Hongkong is that the Germans received

financial facilities from British Banks and Discount Houses

which could not have been obtained by themselves

statement is given with all reserve as being the opinion of

the majority of the Liquidators of the German Firms in Hongkong

who were appointed by the Hongkong Government.

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this

My Committee have good reason to believe that owing to

the complications arising out of the war, a large amount of bills accepted by financial houses against goods supposed to

be protected by letters of lien, but which have been delivered

on credit by German firms, have not been retired, and that

by the kindly intervention of the British Government, a portion,

at any rate, of those bills are being held by the Government "in cold storage" until the end of the war.

well founded;

My Committee would be glad to know if their belief is

if so it would seem to indicate official

approval of a system of finance which as described in Mr.

Ainscough's Report, can hardly be looked upon as sound or

legitimate.

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