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FEATHERS:

THE NORDISK FJERFABRIK :

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This matter is one of some difficulty and there is some difference of opinion, both here and in Copenhagen, with reference to the proper treatment of the Nordisk Fjerfabrik. As is pointed out in the Minute referring this matter to me, it has reference to two consignments which are in the Prize Court, and to one consignment stored at Copenhagen.

The two shipments which have been placed in Prize are those on the "Tomak" (9.2.16.) and on the "Texas" (10.5.16.) The shipment stored at Copenhagen is that on the "Aurora" (13,4.16.)

In order, however, to make a decision on the sub- ject possible two other shipments must be borne in mind. The first was a consignment on the "Douro" which was re- leased on April 14th on Guild Guarantee: as to this, Sir H. Lowther's Despatch of May 8th 1916 (No 690 Commercial) shows that the Guild have satisfied themselves that the guarantees have been observed.

The other shipment to be considered is certainly ra- ther a remarkable cne, and it is referred to in Sir H. Lowther's Despatch above referred to. This is the ship- ment by the S.3. "Osten" or "East" of an enormous quan- tity of feathers from Shanghai to Copenhagen. The amount involved is very large, so large that the Nordisk Fjer- fabrik could clearly not have undertaken the deal with- out financial assistance from some quarter. This ship- ment is dealt with in a Meme by Mr. Simpkin, dated May 25th 1916; the substantial conclusion of which is that there is evidence, or at all events suspicion, that the shipment has been financed with German money, but that

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