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International Law, as was pointed out in the judgment of the Privy Council in the case of the "Zamora".

It appear to Lord Grey that Section 11. of Ordinance 22. of 1915 has a proper scope, and subject matter, namely, goods belonging to persons subject to the Ordinances, that is to say to residents or to traders in the Colony, which goods are suspected to be destined for or to have arrived from an enemy. But Lord Grey submits that to deal with enemy goods properly so called, namely, gooda belonging to enemies, under the above-mentioned Section is not an appropriate course, and might lead to international difficulties, since a Prize Court is the proper Tribunal to deal with such goods.

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With reference to paragraph three of your letter under acknowledgment, I am to say that the letter from this Department of the 23rd ultimo 80967/45x was not intended to suggest that there was any question of paying compensation

in respect of the detention of the goods.

I an,

sir,

Your most obedient,

humble Servant,

for the

Walter Townley

CONTROLLER.

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