CO129-431 - Governor Sir May - 1916 [1-2] — Page 370

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observance of the lien.

No doubt we shall have a letter from the Board of

Trade on the subject; and we care.

wait After the mating your one other of

meichssad

torom kis megainspotes that the acceptance rent back

A

now a good many years, that it may originally have been suggested by German houses, who were more prepared to take certain risks than the British, but that these houses had very often become merged in British houses and that it was often difficult to say where the British

interest ended and the German interest began.

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Cast

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A.E.C.

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17

Note to bring up

115/4/16.

if we do not hear from B. T.

by the.

G.G.

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·CONFIDENTIAL.

Sir,

5436415

13390

REC

RECH W 15

GOVERNMENT HOUSE.

HONGKONG. 9th. February, 1916.

367

I have the honour to acknowledge the receipt of your Confidential Despatch of the 24th. December, 1915, enclosing a copy of correspondence relating to the financing of British and German trade in Hongkong and China.

2.

I am unable to confirm the correctness of the opinion quoted from British merchants in Hongkong that the German firms received from British banks and discount houses financial facilities which could not have been obtained by themselves. The degree of financial facility granted must always depend on the credit and standing of the particular applicant, but it seems to me impossible to believe that first class British firms could not have obtained facilities equal to those enjoyed by many of the Geram firms, and I have not heard of any instances in which the facilities of the London acceptance system were refused to such a firm.

3.

It is not known locally whether any bills relat- -ing to shipments to the former German firma here are amongst those which are being carried till after the end of the war, but in any case the proceeds of shipments financed by London acceptances are being, and will be, remitted according as the course of the liquidations allows. Any proceeds of trust goods which are collect- -ed by the liquidators are of course being appropriated in strict socordance with the letters of lien, but where such proceeds were

collected

$0..

GHT HONOURABLE

ANDREW BONAR LAW, M.P..

&c..

&c...