convenient to acquaint you with them.
In a letter to us of the 24th instant written for trans
mission to your Department Mr. Patterson says:-
X
751594/15
CUBA
'As the Colonial Office knows, the agreement of February 1915
'between the British Government and the Textile Alliance was
'made with the Board of Trade. To make the supervision of th
'British Government in foreign territory complete under this
'agreement it, was necessary that before leaving British terri
*the Textile Alliance should obtain absolute control of the
'goods and retain that control until the intended recipient
*America had given an undertaking as to the disposal of the
*goods and then obtained delivery.
It is for that reason that shippers have been required t
'obtain a recommendation from the representatives of the Text *Alliance before they obtain an export licence from the Briti 'Government. The recommendation is obtained by the,shipper 'an application in which is embodied an agreement accepting 'conditions of the Alliance, and in particular that he, the
1 shipper, and his intended destinatory in America, who mist
*have been approved as such by the British Government and all *other parties concerned agree,
(i) to consign to Mr. Patterson, as President of the Text
'Alliance or to one of the Custodian Bankers for account of ti
'Alliance in oase financial protection is needed. The origin 'and the purpose of the interposition of Custodian Bankers wa 'explained to your Department in a letter addressed to you by *Mr. Freshfield on 8th November 1915.
'and
(ii) to hand the Bill of Lading to the representative of en the Textile Alliance or as the Alliance may direct, —.
'as it becomes an operative document carrying the title to
Nic Address:"FRESHFIELDS STOCK LONDON.
ere 7760 CENTRAL.
Fans ExpAHFIELO, LED
ark HANSOn FresЯpiLD
Kes WiluaM FRESHFISLO
WILLIAM HARONBAYER LEXIL, MRT
'goods.
363
New Bank Buildings,
26 17:
449
31, Old Jenry, (E.C.2)
The purpose of the rule is to ensure that so soon as
*the Bill of Lading becomes an effective document of title to
'the goods the right to dispose of the goods will pass into the
'absolute control of the Textile Alliance and so remain until
'delivery is given to the recipient.
"The Alliance consider that for these reasons it is essential
'for the practical working of this system that they should be
represented at the place of export and doubt whether efficient
*control of the merchandise can be assured to any private organ-
'isation by other means which permit the retention and trans-
'mission of documents of title by shippers to banks or individ-
'pals who need not be the approved recipients. Buch banks or
'individuals may thereby set up an equitable title and obtain
'possession by legal action. Under the Alliance system this
'course has in fact never been attempted.
t
The present system of consular consignment presents the
only alternative affording complete security.'
Mr. Patterson will take an early opportunity of waiting
upon your Department if it will be agreable to you to receive him.
We are, Sir,
Your obedient servants,
The Under Secretary of State,
Colonial Office,
S. W. 1.
Prechfuilds