No. 3435/1916.
Confidential.
30389
82
COLONIAL SECRETARY'S, OFFICE,
HONGKONG, 1st May, 1916.
GENTLEMEN,
Letter of Instructions No. 13.
In continuation of my former letters I am directed to convey to you the follow- ing further instructions of His Excellency the Governor :---
Sale of all Assets except Goodwill, Trade Marks, and Launches. All the assets of the enemy firms now in liquidation are to be sold, except good- will, trade marks, and launches. Leasehold property must be sold by auction, and it should be offered subject to a reserve based either ou the value set on the property by the enemy firm or on a valuation. Short leases may be surrendered by arrange- ment with the lessors. Before beginning to deal with any leasehold property the liquidators should ascertain that they have possession of, or can obtain, the title deeds relating to the property, and they should consult their solicitors about the title. Where the liquidators are a firm and leasehold property has to be assigned or re- assigned it will be necessary for a natural person to be appointed as liquidator in substitution for the present liquidators, and steps are being taken to make the necessary appointments. Where shares which are the property of a firm in liquida- tion are pledged the liquidators should not take any steps towards the realisation of the shares without special instructions. The private property of partners should also not be sold without special instructions.
Disclaimer.
The question of the introduction of a power of disclaimer of contracts generally, similar to the power possessed by a trustee in bankruptcy, is now under considera- tion. Liquidators should report to the Attorney General as soon as possible all cases of contracts which they consider should be disclaimed.
L
Sheltering" Cargo.
The local branches of enemy firms now in liquidation are now being treated for Prize Court purposes in relation to "sheltering" cargo as if they were non-enemy firms, and accordingly any sheltering cargo the property in which had passed to such branches before the outbreak of war may be brought forward and will not be liable to seizure. This includes the case of cargo shipped out as free goods by head offices in enemy territory. Licences should, however, still be applied for in every
case.
N & Co
Messrs.
Liquidators of
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