CO129-435 - Governor Sir May & Acting Governor Claud Severn - 1916 [9-11] — Page 331

1

į

COFT.

Hongkong 20th. September, 1916.

J. Gaupp & Co.

327

Và trẻ in receipt of your man of the 13th. Armiert,

Graufring e* to the attitude now taken up by the Hongkong end

Phanghel Bank, with reverd to their claim to have liter or the

Renets of the above firm.

We have made ar arrangement with the Hongkers Bark

whereby they rebair their lien on the diamorde which were

included in the Hongkong atcok. You will remember that the

diamorós were always in their posression and the velicity of the

lier or this part of the atoo was never questiered by ourselver.

The Bark have agreed to revard as unsecured, the

balance of the delt plve interest to date but Iere the surplus

&c. from Singapore referred to hereinafter.

This arrangement, we should have thought, must

recuererily have lạc to the cancellation or the interent charged

by the Bank on such part of their cisim «hiel roulé be,

consequently, considered unsecured, but he park Stolired to

saive any of the interent charged during the liquidatier which

Encurt to a Fur approximating $6,100. They argued that trie

interact should he reteirad by them (2 zet off apsiret the

possibility of laving to meet certain drafta against a letter of

oradit granted to Mr. C. Hermann shirtly befors the war, ir

maspect of which there is a sum of about $450 cutsterdirs, which may quite possibly have bean drawn against.

Ch.

The letter of credit having bein guaranteed by Vesers.

J, Gourp & Co. of Bengkong, is a claim which most ba admitted by the liquidators, are the arrangemert ahatan above practically resolves itself into ruck an admission of liability.

As you are aware, the Hongkong & Shanghal berking Corporation, firvapore, held a lien or firmapore areste to cover advances at Singapors, or advances made in Hongkorg. The Bark