elf.
D
My findle
The restrictions on trading with Germans in
China consist of:
(a) The Proclamation by which trading with such persons is treated as trading with the enemy.
This
applies to all British subjects both here and in the
Colonies.
(b)
The prohibition of exportation of articles to China unless consigned to firms included in a Thite List of approved firms.
The United Kingdom
Proclamation applies only to exports from the United
Proclam Kingdom, but there are corresponding ations in the
Colonies.
All this legislation will come to an end With the termination of the war, i.e. the date of
I do not imagine ratification of the Peace treaty.
that the Trading with the Enemy Proclamations will As to any pro- be continued after that date.
hibition of exportation, except to White List firms, such a prohibition would be possible for a period of years in this country, if the proposed Imports and Exports Bill is passed, and it would in any case be possible in the Colonies, as we have asked them to pass legislation to enable them to continue export prohibitions for a period of three years after the
War.
As to the question of policy, I imagine that it would be necessary for the Colonies to adopt the same line as this country. We could hardly prohibit Hong Kong firms from daling with a particular firm in China, if firms in this country were at full liberty
to deal with it.
I do not know what is intended as regards trading by firms in this country with enemy firms in China. It will presumably depend to some extent on the position of Germans in China after the war,which
will itself depend on the terms of the Peace Treaty.
233
In any case I do not suppose that His Majesty's Government would impose restrictions In dealing with enemy firms in China unless they also impose restric- tions on trading with enemy firms in other foreign countries, i.e. continue the policy of the Statutory Black List and I am not aware of any intention to do this.
I think that we need only acknowledge officially and say that the matter will be borne in mind; and send copies of correspondence to the Foreign Office, Board of Trade and Foreign Trade Department B/12b.
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