CO129-438 - Public Offices - 1916 — Page 504

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, liquidation.)

#. (The

writers criticise the instructions given to liquidators on the following grounds :- Firstly, because the instructions expressly state that the liquidatore are not to be held forbidden to take over the agencies of the liquidated firme:

secondly

because claims are going to be admitted against branches of the liquidated firms outside Hong Kong: thirdly, because the liquidators are expressly protected from all legal liability except criminal proceedings; fourthly, because the rate of remuneration allowed to liquidators is out of all proportion with the rate of profits accruing on such goods as metals, &c; Fifthly because the firms are compelled to continue liable in respect of business premises &c. which they hold under lease. This is described as "a crying injustice". It

is ters of course now beding:

be removed by the decision to sell business premises.

The boy claims to damager put forward are

in respect of the following :-

(a) Total cost of liquidation including remunerat tion of liquidators, and salaries to European and Chinese employés, outgoings, rent of business premises and warehouses, and total cost of carrying on the

business? of liquidation)

(b) Losses incurred through the compulsory liquidation.

(1) Through the sale of stock and property, (2) Through the interference with current

contracts of all kinds,

(3) Through the cutting off from the partners

of all information with regard to their business and of relations with their debt- ors and creditors, particularly the

Chinese, who are also debtors and creditors of the liquidator,

(c) Losses of interest on the money belonging to

the businesses retained by the Government.

498

(d) Certain personal losses not directly consequent

on the liquidation, but connected therewith, viz :-

(1) Rent of dwelling houses of deported and

interned persons :

(2) Losses on furniture &c. sold or deteriorated

owing to the damp climate:

(3) The difference between the cost of living in

the places to which persme have been deported and the cost of living in Hong Kong

The letter contains a statement as to the very

great injury done to German trade by the liquidations, which is satisfactory. I do not think it is worth while

to discuss the validity of any of these claims at

present, but the paper should be noted and perhaps this

photograph of the letter might be sent to the Foreign

Office for perusal and return.

06.18/8/6

At once

Gen Dept to ALE

g

822

see

noted

LAY.

گیر

19.8.16

(d)