14.11) I cannot frind that
such
any
undertaking has been required.
12) The constitution
The Adestory
cter
in London
doc, wit Lesen to be ou
concern
We don't know
except in to for
As
Кал
way
be business caused
5
the liquidation of the #kong kanch
of the D. A. Bank.
16. 11) Relations between the HR 48h. Bank 16.01
19901
Thursday &. Nov. 191
Mr. GWYNNE asked the President of the Board of Trade whether the Hong Kong and Shanghai Banking Corporation is licensed to do business in London with or on behalf of the Deutsch-Asiatische Bank of Berlin; and, if so, for what pur- poses and period and for whose benefit?
Mr. McKENNA: My right hon. Friend has asked me to answer this question. A licence was granted in May, 1916, to the Hong Kong and Shanghai Banking Cor- poration in London to receive from the Deutsch-Asiatische Bank in Berlin re- mittances to provide for payment in this country of the coupons of bonds of cer- tain Chinese Government Loans, No other business has been licensed, The purpose for which the licence was granted was to provide for the payment in this country of the interest on the bonds. The period for which the licence was granted was until further notice, The persons for whose benefit the licence was granted were the Chinese Government, inasmuch
as they were enabled to fulfil their obliga- tions, and the holders of bonds in this country, inasmuch as they were able to receive the money due to them.
90
4/6
D. A. Bank
Luce
The wen
au
accounted for
a
above.
Before the
The war
German influence
in the the Shanghai Bauth
afferently shong (see die G. Fiddes
meant on
MD 54364/15 below.)
In the question is one
I should
fo
Th
Treasury
suggest that we had beller
get BAT to
BAT to answer
+
Measury
to lake
ka
above
103
16
14 6157
-
Telling theen
8/17/16 Asse
8.11.16
Consented
The Bizł after Great Struppe
to take this questions ses gest
Ottotal Repors Juesday 144 Kovember 1916.
59. Mr. RUPERT GWYNNE asked the Chancellor of the Exchequer whether, in view of the close relations and agree- ments existing before and since the out- break of war between the Hong Kong and Shanghai Banking Corporation and the Deutsch-Asiatische Bank, and the pre- judicial effect of the same upon British interests and British prestige in the Far East, His Majesty's Govern- ment will now take steps, by legis- lation or otherwise, to prevent German influence being similarly exercised in future, and by requiring, inter alia, that the direction and control of all British banks or financial syndicates engaged in the business of public loans for foreign countries shall be vested exclusively in British subjects, native-born?
Mr. MCKENNA: No evidence has come before me that the relations which have existed between the Hong Kong and Shanghai Banking Corporation and the Deutsch-Asiatische Bank have had a pre- judicial effect either upon British interests or upon British prestige in the Far East, or that German influence has had an oppor- tunity in this connection of being exer- cised to the prejudice of British interests. The service of Chinese Government Loans by the British Bank is beneficial to the bank and the British bondholder, and any alteration of the arrangements now in force would probably benefit German and injure British interests. I am not, as at present advised, prepared to introduce legislation of the character suggested in the latter part of the question, the most probable effect of which would be to transfer a large part of the business in question to foreign institutions.
Mr. GWYNNE: Are we to take it that the right hon. Gentleman is going still to encourage alien enemies trading with these banks?
10
Mr. McKENNA: If the hon. Gentleman will read my reply and examine it care fully, he will find it a complete answer to his question.
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