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Branches and Agencies in longkong of Firms

domiciled in the German Empire.

10. I think that trading with branches here of firms which have their head office in the German Empire is on the same footing as trading direct with persons resident in the German Empire, and that contracts with such branches, entered into after the commence -ment of the war, are criminal in all cases where they would be criminal if entered into directly with the head office in the German Empire. Supplying goods to the branch for the general business of the firm would be supplying goods to the firm in enemy territory, and a contract entered into by the branch on behalf of the firm would be a contract "with or for the benefit of (a) person resident, carrying on business (and) being in the said Empire". References therefore below to the German Empire in dis- -cussing what transactions are criminal and what are not must be taken as referring also to branches here of firms domiciled in the

German Empire.

11. Trading with an enemy subject who has a purely local business here and is not in the employment of a firm domiciled in the German Empire is not in itself prohibited.

12. It would however be an offence to supply to or obtain from such local trader any goods destined for or coming from the German Empire (see the 5th. para. of the Proclamation), and it would probably be an offence to supply him with goods or to ob- -tain goods from him if it were notorious that he was merely a means of transmitting such goods between the enemy country and

Hongkong.

13. It must not be forgotten that such enemy subject, trading here on his own account, would himself be committing an offence if he were to enter into contracts with firms in the German

Empire.

14. A special case is that of agencies held here by local firms for firms in the German Empire. It would seem that such agencies are dissolved ipso facto by the war, and in any event they would come within the general rules stated below with regard

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