CO129-434 - Governor Sir May - 1916 [7-8] — Page 510

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would be awfully grateful if you could put his mind

at rest one way or the other.

Youre ever,

Copy.

My dear Davidson,

Downing Street,

505

# July, 1917.

P.S.

I write to you because I know that you have come into contact with trade matters all over the Empire.

Davis has turned over to me your letter of

the 29th of June about the credit given by German

banks in the Far East.

I cannot find among our papers concerning

the winding up of enery firms any exact foundation

for the Chancellor's statement that it was the

regular practice for the German banks to give people

credit for six, nine and even twelve months, while

our own people could not get anything like the sare

credit from our banks. Possibly the Chancellor had

in mind certain correspondence regarding hat is

called the London acceptance syster. Under this

certain London discount houses used to advance

money to German traders in the Far East range

goods exported to Hong Kong against a letter of lien

under which the German firm undertook to hold the

goods and the proceeds of sale in trust to meet the

bills

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