CO129-432 - Governor Sir May - 1916 [3-5] — Page 68

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Translation of CODE Telegram

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From

SECRETARY OF STATE.

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GOVERNOR, HONGKONG.

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Date

10th February, 1916.

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It has been decided by H.M.Government that it is

desirable that all enemy firms within Colony should be con- pletely liquidated. Goodwill, trademarks, land and buildings and

other permanent assets of firms should be sold but no private

estates of individual partners. Patent Office will be consulted

as to proper method of sale where there is a joint interest in Collection of a trade mark between enemy and British subject. debts should be as complete as possible but need not be hurried

Claim if likely to damage British, allied or neutral interest. of British, allied and neutral creditors should be paid if possible in full, no provision being made enemy creditors any balance remaining should be retained till end of war in hands of Custodian of enemy property, legislative sanction being obtained if necessary. In order to expedite liquidation liquidators should have power to disclaim contracts subject to rights of other party to prove in the liquidations for any

All con damage which they may suffer through the disclaimer. tracts except such as relate to goods actually shipped to Colony but not yet delivered should then be disclaimed. After liquidation no action should be allowed to be brought within Colony against liquidated firm or company or any of its members or remaining assets or any official or other person concerned in liquidation for any debt incurred in it prior to liquidation I approve of your passing necessary legislation as soon as possible. You should report by telegram what steps are being taken and any difficulties which may arise. Similar instruct- ions are being sent to Ceylon and Straits. Despatch follows by mail. I am considering whether arrangements should be made to

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