CO129-442 - Governor Sir May - 1917 [4-6] — Page 406

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Conveure 2.

HONGKONG GENERAL CHAMBER OF COMMERCE

404

Hongkong, 22nd. May, 1917.

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•Emoda"098 Istaoloj

«YTAJSZOŚ

.coTertio0 to redner) Iaroned gnoignoï.

I have the honour to acknowledge receipt of

your letter of 23rd. ultimo, requesting my Committee to explain

in detail comment contained in this chamber's letter of 5th.

August last regarding the correspondence with the Secretary of

State for the Colonies and having reference to the oredit

facilities that were formerly extended to German firms in Hongkong,

In reply my Committee direct me to state that

the position is very clearly aet cut by Mr. Ainscough in hie

Report upon the "Conditions and Prospects of British Trade in

China", Section 2, Report on German Trading in Hongkong, Page

201, where he reports as follows: -

"Arrangements are made with a certain Accepting

"House to accept the Drafts of the shippers up to a certain

"amount. As the goods are shipped from Manchester, Bradford,

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# or Hamburg, a Bill is drawn at six months' sight on the

"Accepting House, which accepts it, and the drawer then "discounts it in the open market. Inasmuch as the Draft

"is fine paper on account of the standing of the Acceptor, *it can usually be discounted at 1 per cent below bank rats. "The Acceptor usually charges & per cent per month for the "facility, and the total cost of financing is merely the "accepting Commission, per cent per month, interest at "1 per cent below bank rate, and the cost of the Bill

"Stampe.

The Accepting House send the documents with a "letter of lien attached to their clients in China either "direct or through an Eastern Bank usually direct. The "China House signs the letter of lien, returns it to London, "and takes delivery of the goods upon arrival. In most

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casce the China House pledges itself in the letter of