(97966/15)
£3
view, and it seems by no means improbable that the
British Court in China would so hold. In any case, the
matter is one of very minor importance, especially in
view of the passing of the Trading with the Enemy Amend-
ment Act, and it seems unnecessary to take any further
action.
2.
As Germans in China are enemies for prize purposes,
the answer is in the affirmative. The point is not like
-ly to arise often, as French and Russian ships are not
allowed to carry such goods, and Japanese ships have
been asked not to do so. There would appear to be no
reason why we should not make use of our powers of
seizure if the case arises.
3.
Strictly speaking all such contracts become illegal,
but it has been decided to issue licences in certain
cases. Copies of the instructions which have been sent
John
to Sir Jordan are enclosed, with his telegram to which
they formed a reply. The last sentence of this para-
graph has already been dealt with, it being considered
undesirable