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9. Although Article 5 of the Order in Council, printed as Appendix I to this Memorandum, only refers to the right to requisition at any time, subject to payment of compensation, enemy cargo on enemy merchant ships, yet the wording of paragraphs 37 to 40 of the draft instructions printed as Appendix II to the Oversea Defence Committee's Memorandum No. 446 M, dated the 10th April, 1912, does not specifically state that the power of requisition is not to apply to enemy cargo on neutral vessels.
10. It thus came about that, in making arrangements to give effect to the policy recommended by the Committee of Imperial Defence in regard to the treatment of neutral and enemy ships, a doubt arose on this point. Attention was called to the fact that, although there was no question about the inviolability under the Declaration of Paris of enemy cargo not being contraband of war in neutral bottoms on the high seas, it was not clear whether this rule covered the case of enemy cargo in a neutral vessel in a belligerent port.
11. The question was accordingly considered by the Committee of Imperial Defence at their 119th Meeting. It was then pointed out that while the gain to be derived from the requisitioning of foodstuffs, in neutral bottoms would be slight, the taking of such action would not only give great provocation to neutral Powers, but would create great uncertainty and deter neutral vessels from visiting British ports in time of war.
12. It was agreed, therefore, that enemy cargo of foodstuffs and materials for manufacture in neutral ships in British ports should not be considered as liable to requisition subject to payment of compensation: and in this conclusion the Prime Minister of Canada, who took part in the discussion, concurred.
13. In giving effect, therefore, to the instructions to port officers regarding the procedure when foodstuffs or other commodities being enemy cargo are requisitioned, it should be borne in mind that these instructions do not apply to the case of neutral vessels.
14. According to the established practice in time of peace at ports in the United Kingdom masters of such vessels as are leaving the port again within twenty-four hours are not required to make “ a report."
15. If this practice were adhered to in time of war the local port authorities would have no means of ascertaining the nature of cargo in the vessels in question: and, in the circumstances, there would be no security that the cargoes of these vessels were not contraband, although the fact of their being granted clearance from a port in the United Kingdom would probably be accepted by the commanders of His Majesty's Ships as proof that all goods on board were of a lawful character.
16. The question of the grant of clearance in time of war to neutral vessels in ports in the United Kingdom has, therefore, been laid before the Committee of Imperial Defence: and that Committee have come to the conclusion, that in time of war the local port authorities should take notice of any cargo, not to be landed in the United Kingdom, which is on board a neutral ship, without regard to the time for which the ship remains in port, and that such ships should be made to unload contraband of war before being allowed to leave the port.
17. The Oversea Defence Committee recommend that arrangements should be made for similar action in time of war on the part of the local port authorities at oversea British ports, for by this means it will be possible to ensure that no neutral vessel will in time of war be allowed to leave a British port with contraband of war on board.
18. In order that British war vessels may be able in time of war to ascertain with certainty whether vessels met at ses after leaving a British port have received authority to clear the port, it is very desirable that a uniform form of clearance label should be given to all vessels clearing from British ports after war has been declared.
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