CO129-433 - Governor Sir May - 1916 [5-6] — Page 383

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fluctuations of exchange, with a range as great as 16%, have

also to be considered, and it is hardly possible for much new

business to be done on such a vague basis. There is therefore

little general business being done.

3.

The position is illustrated by the fact that the

European Firms have found it necessary to grant a second ex-

-tension to the Piece Goods Dealers of the time for taking

delivery of their orders, for it was impossible for the Dealers

to dispose of the goods at this juncture. The liquidations of

the German firms are also being delayed owing to the refusal

of the dealers to take up their orders. Rice foodstuffs and

firewood, however, seem now to be moving more freely, but it

appears that the formation of fleets under convoy has been found a necessary precaution. The price of vegetables poultry

and firewood, for which Hongkong depends largely on the West River, has risen some 20% - although some part of this increase

must be attributed to the extra demands of the refugees (os-

-timated at 80,000 to 100,000) now in the Colony.

4.

I have sent a copy of this despatch to Hiz

Britannic Majesty's Minister at Peking.

I have the honour to be,

Sir,

Your most obedient,

humble servant,

Bung

Governor,&c..