45
253
P
(b) Giving Governor absolute power to determine what are firm assets
in all cases.
As to estates and similar properties, see your telegram.* Distinction between property substantially involved in commercial under- takings and other property should be preserved if possible. Object of this dis- tinction is to avoid interference with estates of individual planters, which is undesirable, unless difficulties of maintenance during the war make it necessary. In latter event estates might be let until termination of war, absolute power being reserved to Government to decide date of termination. If letting impossible sale can be allowed. I should desire above principles to be observed if possible, but if local conditions make this impracticable you may use your discretion, reporting to me in due course.
As to questions raised last paragraph your despatch, I consider Freudenberg's mills should be permanently worked by Government or unofficial body under Govern- ment control. Sale to private purchaser undesirable. Any other oil mills belong. ing to liquidated firms might be included in this arrangement if practicable. I am advised that output of oil may be safely stimulated up to total of 40,000 tons per annum, and increase on this may be possible, as to which I will address you later.
As to other properties, if fair price cannot be obtained without advertising here, this may be done, advertisements being issued through Crown Agents in name of liquidators-Bonar Law.
18472
No. 41.
THE SECRETARY OF STATE to THE GOVERNORS.
(Sent 8:0 p.m., 16th May, 1916.)
(Hong Kong.)
(Ceylon.)
(Straits Bettlements.)
(Nigeria.)
TELEGRAM.
[Answered by No. 54.]
INSTRUCTIONS contained in my
(Gold Coast.)
(Sierra Leone.)
(East Africa Protectorate.) (Nyasaland.)
[Hong Kong, Ceylon, Straits Settlements: telegram of 10th February,t] [Nigeria, Gold Coast, Sierra Leone: despatch No. [192,] [92,] [46,] of
16th February4]
East Africa Protectorate: despatch No. 129, of 24th February,§] [Nyasaland: despatch No. 39, of 24th February,||]
should be varied as follows:-( Begins.)
[Not to Hong Kong: Direction that after liquidation no action should be brought against liquidated establishment, its members or assets, should be can- celled. In case of secured enemy creditors proceeds of sale of security should be In case of applied in payment of secured debt to Custodian Enemy Property. claims for wages or salary by enemy subjects interned in British territory, amount of claim up to £50 may be paid to Commandant internment camp as preferential claim; remainder should be paid only when all non-enemy creditors satisfied in full. [To East Africa Protectorate only: Above applies also to Zanzibar: see my despatch No. 22 [109], of 24th February:§-BONAR LAW.
* No. 96.
† No. 22.
1 No. 154.
§ No. 181.
# No. 180.
18472
*SIR,
No. 42.
THE SECRETARY OF STATE to THE GOVERNORS.
(East Africa Protectorate.)
(Jamaica.)
(Nigeria.)
(Trinidad.)
(Hong Kong.)
(Nyasaland.)
(Ceylon.)
(Gold Coast.)
(Straits Settlements.)
(Confidential.)
(Sierra Leone.)
Downing Street, 19th May, 1916. WITH reference to [Trinidad and Jamaica only: my Confidential despatch of the 18th of February,*][To the rest my telegram of 16th instant,†] regarding the liquidation of enemy firms, I have the honour to inform you that, on recon- sideration of the question in the light of recent legislation in the United Kingdom, I deem it desirable to depart in certain respects from the recommendations of the Interdepartmental Committee on this subject.
2. In particular I have decided that it will not be desirable to adopt the recommendation of the Committee that, after the completion of any liquidation, no action should be allowed to be brought in the Colony or Protectorate concerned against the liquidated firm or company, or against any of its members or remaining assets, for any debt incurred by it prior to the liquidation. This recommendation does not con- form with the policy which is being adopted in this country under the Trading with the Enemy Amendment Act, 1916. That policy is to leave both companies and unregistered firms liable to be sued, and able to sue, after the completion of the liquidations, although in the case of a partnership between legal "enemies" and British subjects the position may be somewhat doubtful, since the partnership will have been dissolved by the War. Even in this last case, however, it is thought that proceedings could be taken against the partners of the late firm.
3. Another point which has come up for consideration is the position of enemy subjects who may be secured creditors of liquidated firms: on this I have come to the conclusion that, although there is no reason to depart from the recom- mendations of the Committee so far as unsecured enemy creditors are concerned, the proceeds of sale of any property which forms the security for a debt due to an enemy subject should be applied, so far as it will go, to the reduction of that debt, the amount so payable being handed over to the Custodian of Enemy Property.
4. Further, with regard to enemy subjects who may have unsecured debts against a liquidated firm, I think an exception from the general rule should be made in the case of arrears of wages or salary. Claims of this kind by enemy subjects interned in British territory may, I think, be allowed to rank up to a total amount of £50 in each case as preferential debts, the amount being paid over to the Commandant of the internment camp concerned. The balance of any such debts may be allowed to rank next after debts to unsecured non-enemy creditors, but any amount which may become payable under this direction should be transferred to the Custodian of Enemy Property pending further instructions.
I have, &c.,
23798
A. BONAR LAW.
(No. 224.)
SIR,
No. 43.
CEYLON.
THE GOVERNOR to THE SECRETARY OF STATE.
(Received 22nd May, 1918.) [Answered by Nos. 46 and 48.]
The Queen's Cottage, Nuwara Eliya,
Ceylon, 22nd April, 1916.
WITH reference to your despatch No. 93, of the 24th February, 1916,‡ on the subject of the liquidation of enemy firms, and Mr. Stubba's despatch No. 180, of
!!
* Nos. 171 and 170.
+ No. 41.
‡ No. 27.
PUBLIC RECORD OFFICE
Reference :-
EPILC885/25
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PUBLIC RECORD OFFICE, LONDON
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