CO129-453 - Acting Governor Claud Severn - 1919 [1-3] — Page 229

# SECRET,

My Lord,

GOVERNMENT HOUSE,

HONGKONG. 12th. February, 1919.

With reference to Mr. Long's Secret

Despatch of the 17th. October, 1918, I have the honour to offer the following criticisms and suggestions on the details of the proposed scheme as it will affect persons, firme, and corporations carrying on business in Hongkong.

2.

I do not desire to offer any objection to

the proposal to make Singapore the clearing house for the Eastern Colonies and Weihaiwei, and I have informed the Governor of the Straits Settlements accordingly.

3.

I notice that it is not proposed that the scheme should apply to German subjects who are under a German ex-territorial jurisdiction. This is a matter of considerable importance to certain banks in Hongkong, owing to the number

of German subjects who were carrying on business in China

before the war, and I would venture to suggest that the

scheme should if possible be applied to such cases. If it be not so applied, a question will arise as to whether the

German Government will accept responsibility where one or

more of the partners in the German debtor firm resided in Germany. In some cases the head offices of the German firms

were in Hongkong or China, though practically all of them had partners in Germany. One objection to the assumption of responsibility on the ground of the residence of a partner in

Germany

RIGHT HONOURABLE

VISCOUNT MILNER, G.C.B.,

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