CO129-432 - Governor Sir May - 1916 [3-5] — Page 646

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with regard to Manton's company,

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14/6/16

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A CONFIDENTIAL.

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Sir,

THEC

27795

Rea 12 JUN 16)

GOVERNMENT HOUSE,

HONGKONG. 29th. April, 1916.

642

I have the honour to inform you that a question of some difficulty has arisen as to the manner in which a certain Mr. D. W. Hunton, who was formerly one representative here of the Siemens China Co. should be treated. The matter does not appear to be of much practical importance, but it may raise questions of principle.

2.

The Siemens China Co. is a selling organisation, established by the Siemens combine for the purpose of distributing the products of the various Siemens factories. The head office of

this selling organisation is at Shanghai. At the time of the out-

-break of war i had a branch at Hongkong which was under the management of Mr. D. W. Munton, and another branch at Canton was

under the control of the Hongkong branch. All the branches of the

Siemens China Co. accounted to the head office at Shanghai, which in turn accounted to an office of the Siemens combine in Berlin,

where the final adjustment and distribution was made. The branches

of the Siemens China Co. ordered goods from the various Siemens factories, two of which are in England, and the system was that each factory was credited with the proceeds of the goods distributed which came from that factory, and was debited with a proportionate part of the expenses of the branch which distributed the goods. The

Hongkong branch of the Siemens China Co. was in the habit of order-

-ing

THE RIGHT HONOURABLE

ANDREW BONAR LAW, M.P.,

&c..

&c...

C..

1