CO129-438 - Public Offices - 1916 — Page 128

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LIQUIDATION OF CERMAN FIRMS IN HONGKONG

(Consul General George H. Anderson, Kongkong

China Deo. 4)

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The liquidation of the business of German firms in Hongkong under the direction of the British Government, and growing out of the war, has proceeded with more succes and less friction and trouble than was anticipated,

Taking all lines of business into consideration and allowing for many special caves, it is generally underetod that the work of winding up the immense business of all these firms is about 75 per cent complete. all business has been arranged so that further liquidation In most dAFTE is a matter of periodical action from month to month, terminating within a short period.

OOVEENIGENT INSTRUCTIONS PREVENTED DÆKOHALIZATION,

The disposal of stocks of goods of all kinds on hand at the time liquidation was commenced has presented the greatest difficulties. It was the part of wisdom, not only in the protection of the interests of German firms but their British bankers and their British competitors &# well, that goods be not dumped on the market in such way as to demoralize it, and prevent British and other holders of similar goods from realizing upon their own stocks in a fair and profitable way, Instructions of the Hongkong Government were carefully drawn to prevent any such demoralization, However, the disposal of such stocks has

so far proceeded that the Goverment has fixed April 30, or another five months period from the time the order was issued, as the time by which it ements all "took” of goods to be sold or the presentation of some adequate reason by liquidators as to why such sales have not been made.

RISE IN SILVER EXCHANGE HALPYUL - LOSS ON MACHINKRY AND PARTS

In general, stocks of goods have been sold to better advantage than had been anticipated. The shutting off of supplies of many lines of goods from Europe has enabled the stocks of such goods still held here to be sold at satis- factory prices. Cotton piece goods, which constituted the largest item among such assets of most German firms, hav been held until recently, when they have been disposed of at good prices, The recent rise in silver exchange has been particularly helpful in that line.

Goods in the nature of luxuries, such as wines and liquors, have usually been sold at a loss or at best abov cost. Machinery has been sold at a loss, since by ream unusual business depression there has been little demand fi machinery of any sort except for special purposes for whic special machines must usually be ordered. A serious drać on some of the firs handling machinery has been stocks / #pare parts and supplies. The forced sale of such stoc would realize almost no return, while, on the other h is manifestly impracticable to hold such stocks inde: for the sale of such supplies as they may be needed t consumption.

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