CO129-453 - Acting Governor Claud Severn - 1919 [1-3] — Page 230

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Germany would be that the greater part of the assets of the firm might be in China.

The position of branches does not seem to be entirely clear, and this also is a question which probably is of more importance in Hongkong than in the United Kingdom. A British firm or corporation may have offices in Hongkong, the Straits Settlements, China, neutral countries and Germany," and it may have had business relations with a German firm which had offices in some or all of those places before the war. On such a state of affairs the following questions

would arise:-

5.

(a). Would ol aims by or against branches in neutral

countries be outside the schame, although the head offices might be in British or German territory respectively ?

(b). Should the claim by the British firm or cor-

-poration be made as a whole by the head

office, or should separate claims be made by

the various offices ?

(a). Would claims be received against branch

oftices of German fire in neutral or aliied

territory provided that the debtor firm had an

office or a partner in German territory ?

It does not appear whether secured

creditors will be required to surrender their securities, or

whether they will be allowed and required to realise their

securities and to claim or to account for the balances.

Certain creditors in Hongkong hold as security immovable

property in certain foreign concessions in China, and it might be considered more desirable that these securities

should be realised by the creditors.

6.