337
PUBLIC RECORD OFFICE
Reference :-
PELLENICO.885/25
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-
COPYRIGHT PHOTOGRAPH-NOT TO
17817
SIR,
152
No. 148.
GOLD COAST.
THE GOVERNOR to THE SECRETARY OF STATE.
(No. 265.)
(Received 17th April, 1915.)
[Answered by No. 149.]
Government House, Accra, 26th March, 1915. I HAVE the honour to acknowledge the receipt of your telegram of the 17th instant,* which reads as follows:-
"It has been suggested that all or some of following classes of debts might be met out of the assets of branches of enemy firms in British West African Colonies, namely, firstly, debts from branches in other British West African Colonies of same firm; secondly, debts from head offices in enemy territory in respect of goods supplied to head office for shipment to branches in British West African Colonies; thirdly, debts for goods supplied directly or via head offices in Europe to branches in German West African Colonies now in British occupation, or to branches in French West African Colonies. As to third class, I am inclined to reject this proposal in any case. Has any decision been arrived at within the Colony as to any of these points? Please reply by telegraph briefly, and send full report by an early mail, stating your views as to desirability of adoption of proposals and probable effects on liquidation ";
and to confirm my reply of the 24th instantt as follows:-
"
Referring to your telegram of 17th March, liquidation of enemy firms. Only decision bitherto arrived at locally is to pay all admitted debts to British, friendly, and neutral creditors. Generally speaking, I see no objection to meeting debts of first class mentioned in your telegram, also debts of second class if satisfactory proof forthcoming. I deprecate admission of debts of third class. Despatch follows."
2. I attach, for your information, copies of minutes by the Controlling Officer and by the Attorney-General, to whom your telegram was referred.
3. In my telegram of the 11th February, which replied to yours of the 2nd idem, § I informed you that I was issuing instructions for an affidavit of an English firm to be accepted as a proof of a debt.
I have, &c.,
HUGH CLIFFORD,
Governor-
Enclosure 1 in No. 148.
MINUTE BY THe Controlling Officer (Mr. Mitchell).
HONOURABLE COLONIAL SECRETARY,
No decision has been arrived at locally on any of the points named, and as they seem to be legal rather than executive I would suggest that they be referred to the Honourable Attorney-General.
2. Personally I have always taken it for granted that the second class of debts would be paid-provided of course we could get them admitted by the debtors or even proven by the condition. The local branches of the enemy firms, undoubtedly, are morally responsible for them, but, as pointed out in (8) of Minute Paper 397/15, the practical difficulties in the way of getting them admitted, or even proven, are almost, if not quite, insuperable that is, unless the Secretary of State and the English Chambers of Commerce can help us to a solution.
3. As regards the first class, I see no executive objection to paying them pro- vided that the debts of the local branch are all paid out of its assets before any assets are transferred to pay the debts of another branch in another Colony; and provided also that the Government to whom such assets are transferred accepts: full responsibility for their proper disposal.
* 10933.
† 18928.
+ 7012.
§ 3197.
153
4. To pay the third class, I think, would give rise to considerable execu- tivé, and probably to even greater legal, difficulties. For instance, the French authorities and the military Governors of the captured German colonies might easily accept proofs of debts that would not be admitted here; and, again, we could not very well hold them responsible for transferred assets.
come in.
5. I am not quite clear as to what is meant by "the probable effects on liquidation." The principal effect would be to increase the volume of claims against enemy estates, but by how much it is quite impossible to say till all the claims These increased claims, too, might mean that we might have to sell the real estate as well as the personal property of the enemy firms; or in some cases the claims might even exceed the total value of the estate. We shall not know the exact results, of course, till all claims have been received.
O. M.,
19th March, 1915.
(397/15.)
Sub-enclosure to enclosure 1 in No. 148.
Controlling Officer.
MINUTE BY THE CONTROLLING OFFICER (MR. MITCHELL).
HONOURABLE COLONIAL SECRETARY,
(6)
ORDINANCE No. 22/1914 gives the Controlling Officer all the power he needs
to deal with the contracts be has found, or is likely to find, in the course of his work. Should further powers be needed he will ask for them.
As regards the payment of debts the Secretary of State's assumption is correct, and no evidence other than that furnished by the books of the debtor will be required. Debts of which no evidence can be found in the books of the enemy firm cannot be paid. This will seriously affect numerous manufacturers in the United Kingdom who have supplied goods to enemy firms here through German houses, as such transactions seldom appear in the books of the local firms; but I fear we cannot help that. I have thought the matter out carefully and consulted many of the best business men in the Colony, with a view to devise some businesslike scheme under which those manufacturers would be paid, but without success. Should the Secre- tary of State, however, in consultation with the Chambers of Commerce, formu- late a scheme, we can carry out his instructions. I would suggest 15th March as the last date for receiving claims.
Goods that may arrive here consigned to an enemy firm will be treated as the property of that firm.
Lands and buildings will not be realized.
11th January, 1915.
Enclosure 2 in No. 148.
O. M.,
Controlling Officer.
MINUTE BY THE ATTORNEY-GENERAL (MR. TOWNSEND).
THE HONOURABLE COLONIAL SECRETARY,
THE only decision come to was to pay all admitted debts to British, friendly, and neutral creditors..
This worked all right so far as concerned transactions by the local branches, this has worked satisfactorialy [Sic in original].
As to transactions which took place with the branches in places in enemy territory, it is impossible, owing to the circumstances of the War, to ascertain whether any money is owing or not. The best course which at present presents itself is to enable the Controlling Officer to transfer to the guardian, receiver, or similar officer in any other part of the British dominions who has been appointed to take control of enemy property such sums as in his discretion he considers may be so transferred having regard to other possible claims against the fund. The sum transferred to be used for payment of debts of the firm by such guardian according to the law obtaining in that part of His Majesty's dominions.