CO129-431 - Governor Sir May - 1916 [1-2] — Page 418

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4

civilized and uncivilised world.

4.

415

Nothing could be more dangerous to the British Empire

and to British Commerce than German aims of the nature referred to, and nothing could be fraught with greater peril to this Colony, than for such aims to succeed in China, and my Committee would draw your attention to a telegram to "The Times' of the 8th, November last on this subject from its Paking correspondent concluding as follows "a8 China is the great field in which Germans hope to recuperate then- -selves at the end of the war, it is hoped that the closest atten- -tion will be given to measures to frustrate German schemes".

In the opinion of my Committee it is time the British Government took all necessary and proper steps to counteract these aims as far as possible. My Committee would submit that no more far reaching problem in British interests, and particularly as regards British interests in China, exists at the present time.

5. It is by reason of these views of my Committee that it advocates the following steps should be taken by the Government of this Colony in respect of the German firms hitherto carrying on business here vis.:-

The assets in the Colony of all solvent German firme and subjects should, in all cases where no creditors exist, be sold and the proceeds invested in the Tar Loan. Such investments, when made, should be dealt with in accordance

with the principles which it is hereafter determined by the Imperial Government shall govern the disposition of enemy property in the hands of the Public Trustee in England. A similar course should be taken in respect of the surplus assets of all solvent firms and subjects who eventually prove to be solvent after their local liabilities have been

fully discharged. The businesses of the German firms should be wound up, in every sense and the firms should be left to

start afresh in the Colony, if permitted and if they think

well to do so after the waź. The present war is a war for

Commercial life as well as for National life.

6.