Any further communication

on the subject, please quote

No.

and address

98374/45x.

The Controller,

Foreign Trade Department.

Telephone: Gerrard 8640).

53831

FOREIGN DE DEPARTMENT,

REGE 10 NOW 16

ST. JAMES,

S.W.

617

sir.

November 1916.

I am directed by Viscount Grey of Fallodon to

saknowledge the receipt of your letter of the 3rd instant

50752/16 relating to the removal and forfeiture at Hong Kong

of a shipment of wood tar on the Japanese steamer "Hokuto Maru”,

In reply I am to state that after consideration of

the Ordinances which were enclosed in your latter, Lord Grey is

advised that no person or body of persons is treated as an

enemy for the purpose of any Proclamation issued by His Majesty

dealing with Trading with the Enemy.

An enemy is an enemy

by common law and not otherwise, and the sole effect of the

Trading with the Enemy Proclamations and Acts of Parliament is

to make it an offence for British subjects to trade with the

persons mentioned in these Proclamations and Acta.

Such persons are not, however, thereby made, or

"treated as", enemies, and Lord Grey considers that it is mis- leading so to designate such persona.

With regard to the goods of persons who are enemies, Lord Grey is advised that by International Law enemy goods can only be dealt with in a Frize Court, since a Prize Court alone

can administer International Law, and according to International Law, national legislatures cannot alter the rules of

The Under-Searetary of State,

COLONIAL OFFICE.

International/

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