CO129-469 - Governor Sir Stubbs - 1921 [9-12] — Page 589

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Sir,

GOVERNMENT HOUSE.

HONGKONG. 31st December, 1921.

I have the honour to refer to the suggestion

in your despatch No.331 of the 10th of October that in

certain circumstances the liquidations of enemy firms should

be reopened for the investigation of the claims of enemy

creditors and in this connection to invite your attention to paragraphs 2 and 3 of my Confidential despatch of the

14th of November, in which I have given various reasons which appear to me conclusive against the course suggested.

2. A further strong reason why it would now

seem impossible to reopen these liquidations is that the books have been returned in almost all cases to representat-

-ives of the enemy interests concerned as directed in your telegram of the 3rd of June, 1921. But even if the books were available the true facts could not in many cases be discovered, owing to the complicated system by which amounts due for goods brought in Germany were settled through London discount offices and head offices in Germany, as well as to the elaborate precautions taken by the Germans to prevent their office employees from becoming acquainted with the details of their business.

3. Had instructions with regard to the claims of enemy creditors been received in the early days of the war it would, no doubt, then have been possible to have obtained more evidence than was actually obtained; though

THE RIGHT HONOURABLE

WINSTON CHURCHILL, M.P.,

&c.

&C..

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