CO129-459 - Individuals - 1919 — Page 28

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istering the Government to mean, that we should be required immediate-

ly to pay the deficit shown in the liquidators' report as given in the

copy of Par.10 thereof attached to your letter. I cannot however im-

agine that it is contemplated that we should make immediate payment of

the very considerable sums named therein. We have as a matter of fact

already met a substantial part of these liabilities, and if all that

is meant is that we should specifically confirm our liability for the

balance in the event of this not being met out of the liquidation of

the old firm, we are of course prepared to do so, and I am in fact un-

der the impression that an undertaking to this effect has already been

given to the Officer administering the Government of Hongkong.

I would remind you that under the terms of the Bond given by

ua to R.M.'s Government, we are under obligation to make every effort

to secure the complete liquidation of the old firm as soon as possible

after the definite conclusion of peace, and, as partners in that firm

up to the outbreak of war, my brother and I are in any caso, without

giving any specific undertaking to that effect, lia Me for the pre-war

debts of the old partnership, should the assets on liquidation prove

insufficient to meet the claims of ouuditore. While therefore we are

perfectly willing to confirm our liability for the pre-war claims

against the Hongkong Branch of the old firm, this would almost appear

to be a work of supererogation. If it really is intended that wo

should be required to meet the Hongkong pre-war liabilities forthwith,

I would point out that the assete in Hongkong consisting of the trade

marks which we are asking to be assigned to us have no cash value, and

that all the old fim's realisable assets are situated in China proper.

Uf H.M.'s Government could see their way to make such representations