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2.
In the earlier stage the foundation of the
policy adopted was the desire to prevent the sending of supplies or money to enemy territory and generally to prevent trading with the enemy. In pursuance of this policy two measures were adopted which may be roughly stated as follows:-
(a). Local firms which were branches of firms in enemy
territory were given permission to carry out
existing contracts as far as possible, subject to
restrictions designed to prevent the remitting of
money to enemy territory.
(b). Local enemy subjects were given permission to en- -gage in fresh trade on their own account subject
to similar restrictions designed for the same
object.
The view which was taken of the legal position
of local import and export firms which were branches of firms in enemy territory was that trading with them or by them involved trading with persons in enemy territory and so was illegal unless licensed. The policy above outlined received the approval of the
Secretary of State for the Colonies.
Towards the end of October, 1914, it was
decided with the approval of the Secretary of State for the Colonie -es, that all enemy subjects in Hongkong should be either expelled or interned. Although this policy was not directed against trading
by enemy subjects but was based on other grounds, it necessarily involved the stoppage of the trade of enemy subjects in the Colony
and gave rise to the measure taken to wind up their local affairs.
These measures and their objects, appear from the two winding up
Ordinances and the letters of instructions to the liquidators.
4.
The legal position with regard to lenses held by the expelled and interned enemy subjects, and the question as to whether some legislation should not be introduced to modify that position, were also considered. The view taken was that such leases had not determined and it was thought advisable not to