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COPY.
190
C.O 20683
MAY 151
Extract from the "Standard" of 4th. February,
"Trading with the inew. We have on several occasions draw atten-
-tion to the necessity of defining more clearly the intentions of the proclamation of 7th. January with regard to trading with the enery (banking transactions with branches of enery firms, &c.} and we are glad to note that the Treasury has now provided the necessary explanation. It is in the following terms:-
"As some misunderstanding has arisen with regard to the Proclama➡ -tion of January 7 relating to Trading with the Enemy it may be as well to explain that it was not intended, nor is it proposed, to interfere by this Proclamation with bona fides comercial trans- -actions simply on the ground that they may involve some financial operation which technically comes within the meaning of the words *banking business", if that operation is merely incidental to the transaction, and does not affect the general character of the transaction as a comercial (distinguished from a banking)
transaction.
"Nor was it intended, nor is it proposed, to interfere by this proclamation with trans ctions of British Banks or their branches
with firms which do not do banking business, or which in carrying
out the special transaction are acting in the ordinary way of commerce and not in any way as bankers, so long as these trans- -actions are permissible independently of the proclamation. "Licences will also be granted in proper cases to British Banking firms having branches in neutral countries not being neutral countries in Europe, enabling them to continue their banking busin -ness, notwithstanding that the business, by bringing them into contact at some point or another with branches of enery banks, may technically be within the prohibition of the proclamation".