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I am to add that any firms availing themselves of this permission must be prepared to satisfy any British institution interested or the Government if called upon, that any particular contract was entered into before the outbreak of hostilities.
I
am,
&c.,
CLAUD SEVERN,
Colonial Secretary.
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C
Messrs. Deacon, Looker, Deacon & Harston.
No. 18.
COLONIAL SECRETARY'S OFFICE,
HONGKONG, 17th September, 1914.
GENTLEMEN, In reply to your letter of the 11th September, I am directed to say that any German firms which have been granted the limited trading permission referred to in my letter of the 28th August will, so far as the jurisdiction of this Government extends, be allowed to import any goods ordered from British firms in England before the outbreak of war, under the conditions set forth in my letter of the 28th August above referred to, and in particular conditions (2) and (7) of that letter.
I am to add that any firms availing themselves of this permission must be prepared to satisfy the British banks or the Government if called upon, that any particular contract was entered into before the outbreak of hostilities.
I am, &c.,
CLAUD SEVERN,
Colonial Secretary.
Messrs. Deacon, Looker, Deacon & Harston.
Telegraphic.
No. 19.
From the Secretary of State to His Excellency the Governor.
21st September, 1914.
My telegram of September 11th Trading with Enemy Act 1914 passed applies to United Kingdom only.
Section 1 makes any person who during the present war trades or has since August 4th traded with enemy guilty of misdemeanour punishable with twelve months imprisonment and/or $500 fine on summary conviction and with three to seven years penal servitude andjor fine on conviction on indictment in either case forfeiture of goods or inoney.
Trading with enemy defined as any act or transaction prohibited under any proclama- tion issued by His Majesty The King dealing with such trading or constituting offence of trading with enemy at Coinmon Law or by Statute. Provisions making officers of company knowingly party to an offence liable to punishment and making consent of Attorney General necessary to prosecution and prohibiting double punishment for same offence.
Section 2. In case of suspected or anticipated offence by any person firm or company Magistrate may on information on oath laid on behalf of Executive authorise by warrant person named in warrant,
แ 37
A to inspect books or documents belonging to or under control of such person
firm or company.
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→
"B"
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to require any person able to give information respecting business or trade of such person firm or company to give such information.
"C" If accompanied by constable to search premises used in connection with such
business or trade.
In case of urgency Executive may by written order give like authority without warrant. Refusal or neglect to produce books or documents or to give information punishable with six months imprisonment and/or fine of £50 summary conviction.
Section 3 is as follows; begins. Where it appears to the Board of Trade in reference to any firm or company.
"A" that an offence under this Act has been or is likely to be committed in connec-
tion with the trade or business thereof.
"B" that the control or management thereof has been or is likely to be so affected by the state of war as to prejudice the effective continuance of its trade or business and that it is in the public interest that the trade or business should continue to be carried on
the Board of Trade may apply to the High Court for the appointment of a controller of the firm or company and the High Court shall have power to appoint such a controller for such time and subject to such conditions and with such powers as the Court thinks fit and the powers so conferred shall be either those of a receiver and manager or those powers subject to such modifications restrictions or extensions as the Court thinks fit including if the Court considers it necessary or expedient for enabling the controller to borrow money power after a special application to the Court for this purpose to create charges on the property of the firm or company in priority to existing charges. The Court shall have power to direct how and by whom the costs of any proceedings under this section and the remuneration charges and expenses of the controller shall be borne and shall have power if it thinks fit to charge such costs charges and expenses on the property of the firm or company in such order of priority in relation to any existing charges thereto as it thinks fit. Ends.
You should immediately pass legislation embodying these provisions. Full text of Act follows by post.
You will see that main object of the Act and Proclamation is to prevent transmission of money or the equivalent of money to hostile territory. It is not intended to restrict trading by enemy subjects resident or carrying on business in His Majesty's Domin- ions except in so far as necessary to attain this object and Government supervision will us a general rule only be exercised on the grounds and for the purposes indicated in section 3 "A" and "B" of the Act. It has been found necessary however to treat enemy Banks in this country on a different footing and provision has been made in pursuance of Article 1 of Order-in-Council of August 10th see second supplement to London Gazette of August 7th and Article 24 of Order-in-Council September 9th see 2nd Supplement of London Gazette of September 8th issued under Aliens Restriction Act 1914 Circular Despatch August 29th to confine operations of such banks to those necessary for completion of transactions entered into before outbreak of war. Should you consider it expedient in the public interest to subject any class of business or any individual trader to special restrictions or supervision of this kind you should take special measures for the purpose and report by telegram measures taken and naines of firms or traders affected.
In other respects the policy of the trading with enemy Act and Proclamation should be observed and restrictions should not be imposed solely to prevent fair competition with British truders.
Telegraphic.
No. 20.
From the Secretary of State to His Excellency the Governor,
23rd September, 1914.
Your telegram of 17th September see my telegram of 21st September.
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