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saying that a rule or usage of international law is growing up to allow enemy subjects who were in the belligerent's territory at the outbreak of war to remain there during good behaviour. This proposition is enunciated by Hall, op. cit. pages 387 and 388, but he admits that "there can be no doubt that it is not yet firmly
established."
5.
From the above the following position is sought to be deduced. We ought, in accordance with the above growing rule of international law, to allow these Germans and Austrians who were here at the outbreak of war to remain here during good behaviour,
can
but we expel them at any moment. If we do allow them to remain here during good behaviour they are placed, by implication of law, in the same position as other foreigners, subjects of friendly states, and, with certain unimportant exceptions such as the ownership of British ships, in practically the same position as resident British subjects; but we can limit their rights here in any way we please by giving them special and limited licences instead of a general licence to remain here.
6. The advice which would be given on the above view of the law would be as follows. The Governor should ask for authority "to issue to those Germans and Austrians who have been permitted "to continue residence here licences revocable at the will of the "Hongkong Government to carry on trade upon the same footing as "other foreigners in accordance with the principles stated in "Hall's International Law, page 388, and the cases cited in "Chitty's Contracts, page 184". Having obtained such authority he would probably begin by issuing limited licences for the purpose of completing transactions already embarked upon, but would pro- -bably later on, as a matter of policy, grant licences to trade in the same way as any other foreigners are entitled to trade. There is of course no doubt that if the above view of the law be sound, and if the authority in question could be obtained, the Governor's hands would be perfectly free to deal with each local problem as it arose. This view, however, makes no distinction between future trading and the completion of transactions already entered into