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(c) Goods which are the property of a person or firm residing or carrying on business in the British Empire and therefore subject to British Jurisdiction, and which are obtained from, or destined for, an enemy, or a person or firm on the Statutory List, can, consist- ently with international law, be forfeited by a Court, other than a Prize Court, if the local law permits such

a course.

(d) The principles laid down inthe preceding paragraph (c) also apply in the case of goods, which are the property of persons or firms carrying on busi- ness in allied territory, provided that the shipment of the goods constitutes an offence against the Trading with the Enemy laws enforced by the Allied Governments concerned. This proviso involves that, before pro- ceedings for the forfeiture of the goods under the

local law are instituted, you should inform the Consul for the Allied country concerned of the situation, and

ask him whether, having regard to the Trading with the

Enemy laws of his own country, he considers that an ap-

plication for forfeiture should be made to the Court.

If the Consul has no objection the Colonial Government

would make arrangements for the institution of proceed-

ings in the ordinary way.

I am advised that it follows from these prin- ciples that the scope and effect of section 11 are con- fined to goods mentioned in (c) and (d) which are obtained from, or destined for, an enemy strictly so called; and that goods obtained from, or destined for, a person or firm on the Statutory List cannot be forfeited under that

section/

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