CO129-443 - Governor Sir May - 1917 [7-9] — Page 143

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Enclosure

134

Attorney General's Chambers, Hongkong, 30th. Becember, 1915.

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•ORTONTSTOE

Gentlemen,

In reply to your letter of the 21st. December, I am instructed to say that the Hongkong Government do not propose to offer any objection to your sending the circular in question to any shareholders in your company who are eneny subjecte, if you are in a position to ocmmunicete with them, or their attorneya, and that in any case the Government propose to offer no objection to your reserving the proper number of new shares for any such shareholdere.

I would point out that the prohibition against

trading with the enemy applies only

2

(a) to persona resident or carrying on business in an

enemy country or in territory in hostile occupation, and (b) to persons of enemy nationality resident or carrying

on businesa in China, Siam, Persia or Morocco. This excludes Messrs, Jebsen, Dattan, and Hermeling from the category of enemy in the trading sense. your list to exclude Mr. Spalokhaver also, but his lateat

It would appear from address appears to be an address in Germany. Mr. Dattan has claimed to be of Russian nationality, though he

I may say that has furnished no proof in support of his claim,

The affairs of Kesere. Speidel & Co., the Union Rice Mill, and the Orient Rice Mill, are being wound up by liquidators appointed by the Courts of French Indo China, and there is no objection on the part of this Government to your offering the new shares to those liquidators.

I am not in a position to express any opinion

as to the nationality of the persons entitled under the will of Mrs. Lucie M. C. Nioaise. Here again, the Government have no objection to the offer or reservation of the new shares.

In view of the above you will no doubt consider your position and obligations towards the shareholders in question and will consult your legal advisers as to what course you should take.

I only wish to add that the legal position of shareholders who are divided by the line of war from the company in which they hold sharee is a question of much uncertainty, and that this uncertainty and the serious question of polioy which is also involved are the reasons which have led the Government to take up the attitude which they have adopted in the matter.

Hongkong & Whampoa Dook

Company Limited, Hongkong.

Yours faithfully,

(sd.) J. H. Kemp,

Attorney General.