CO129-432 - Governor Sir May - 1916 [3-5] — Page 47

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Register are in respect of goods of German and Austrian manufacture such as aniline dyes. As the manufacture of these goods remains in enemy hands, it seems impossible to authorize the sale of auch

marks.

4.

Enemy owned trade marks used on goods of British manufacture are in a different category. I have addressed

you regarding these in my Confidential Despatches of the 11th. March, 22nd. July and 4th. September, 1915, and the 21st. January, 1916. They are of two classes. One class is that of marks in

a

which the manufacturer had definite legal interest and the other

•

is that of marks used on goods which the importers have ordered

from whom they choose. The goodwill in Hongkong in respect of

such trade marks could be dealt with by the liquidators and it

would therefore be possible to sell the marks. There are however

two objections. In the first place it is not impossible that the

purchaser might be some person formerly connected with the enemy firm, whose object in purchasing would be to keep the marks alive

for the benefit of the original omer. And secondly the sale of

the marks could be made effective by this Government only within the narrow limits of Hongkong, whereas their value lies in their effectiveness as a selling agent in China; and, although in the ordinary course every possible step is taken to get official recognition in China of Hongkong trade marks, yet it would hardly be politic to attempt to press upon the Chinese Authorities the claims of a purchaser under a forced sale against those of the enemy Owner, who has probably deposited the marks in question with his Consular representative at Shanghai. I may refer to the somewhat analogous case of the compulsory transfer in France of the trade marks of La Grande Chartreuse, which transfer the English Courts refused to recognise in the United Kingdom.

5.

I am therefore of opinion that no useful purpose would be served, either in the direction of the benefit of British creditors or in that of the suppression of enemy trade, by

taking steps to sell either trade marks or goodwill. If, however,