CO129-462 - Governor Sir Stubbs - 1920 [7-10] — Page 14

13

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due by nationals residing within the national territory it is

essential to know the residence of the debtor on the material

date.

Creditore here are in many cases in entire ignorance of

their debtors' addresses at the material time, or now. All

German subjects were either interned or expelled from Hongkong in October-November, 1914, and those interned were afterwards

transferred to Australia.

7. Difficulties are arising over the nationality of persons claiming non-German nationality under the Treaty, e.g. inhabitants of Schleswig and Bohemia. I presume that the

Custodian will have to deal with each case as best he can on the

evidence, One case has already been disposed of, i.e. that of an

inhabitant of Alsace-Lorraine. This individual produced a certi-

ficate from a French authority in Alsace-Lorraine which was

vouched for by the French Consulate here.

8. What will be the result if shares which do not in fact

belong to German nationals are sold by the Custodian in the

mistaken belief that they do so belong. This may happen by reason

of a mistake as to the shareholders' nationality. Sometimes the only clue to the shareholders' nationality is his name. Difficul-

ties have already been raised by one important company on this ground. The Company fears possible future actions for rectifica- tion and asks for an indemnity. So far we have not acceded to their request. The companies would no doubt be satisfied if the registration of the Custodian were, by statute, made conclusive

for all purposes.

Cases may also occur of non-Germans who

acquired shares from Germans before the war, but who have not had themselves placed on the register in place of the former German owners. A great many such purchasers effected registration with the consent of the Government after the outbreak of war, but the

use of blank transfers is very common in Hongkong and cases may

still exist. The negligence of the purchasers would scarcely

deprive them of all moral claim. Probably it is unnecessary to

anticipate difficulty on this latter ground.

If a person resident in Hongkong admits owing money to

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