Š
even provisionally
Others no consideration passed; in others the transaction is a forgery e.g. in one case the alleged seal of the payee proved to be the payee's
own seal. Further, in cases where consideration passed or is alleged to have passed, it was sometimes so inadequate as to raise the presumption
that some interest was reserved to the guarantor. It may be sometime, therefore, before the rights of the parties can be
determined and presumably final determination will have to wait for
restoration of Civil Courts. Until directions are obtained, the
Custodian has been told to take such property into custody under
Article 3 of Proclamation No 11, but as soon as it is ascertained
even administratively that the property is "Enemy Property", I suggest
that he should then apply the Trading of the Enemy Ordinance.
8.
No directions have been received as to how that Ordinance should
be applied; in particular how far assets subject there to should be
liquidated. It is suggested that any property required by the
Administration or for rehabilitation purposes should be requisitioned,
payment being deferred, and that all properties which cannot profitably
be taken into custody, should be sold and the proceeds credited. I
have already sanctioned the sale by auction of a China and curio shop
of which the owner is known as apart from the strain on transport and
storage, moving the goods would almost certainly lead to a large
quantity being broken.
9.
It would be of considerable assistance if the intention of
His Majesty's Government with regard to en emy, property were now di-
vulged
-
whether e.g. such property will be applied towards reparations
or making good war damage leaving the owners to claim against the
Japanese Government or whether it is proposed to return it to the
owners.
10. It is already known that so far as Japanese war material is
concerned including food and fuel the ultimate destination is already
covered by agreement. I attach a copy of a draft of such agreement.
11. It is not however known what is the ultimate destination of property
falling outside such class. Perhaps the Board of Trade could be asked to
give instructions.