343
PUBLIC RECORD OFFICE
Reference :--
885/25
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-
COPYRIGHT PHOTOGRAPH-NOT TO
2.
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The Controlling Officer under the "Enemy Property Control and Disposal Ordinance," to whom the despatch was referred, reports as follows:-
CC
8th September, 1915.—I have discussed this question with some of the leading British firms' agents, and I gather that they do not anticipate that their firms will be adversely affected by the collection of debts owed to enemy traders.
'In this connexion I may say that immediate payment of the full amounts due is not being demanded, and offers of payment by reasonable Where it becomes necessary monthly instalments are generally accepted.
to recover debts through the court and judgment is obtained, the enemy firms' agents express their willingness to agree to the debts being satisfied by instalments.'
3. I may add that, on the advice of the Attorney-General, the Governor allowed the agents of some of the enemy firms. to whom considerable sums were alleged to be owing, to remain in the Colony to collect their debts, including those as to which recourse has to be had to legal steps. Considerable dissatisfaction has been expressed both by officials and unofficials in Seccondee at this concession, which it is alleged has been abused by the five or six German merchants who remain there. It is not clear that any steps are called for beyond the application of a stricter surveillance, but personally am inclined to agree with the view that the continued presence of these aliens in the Colony is to be deprecated. I note that in paragraph 6 of your despatch to the Governor-General of Nigeria you state that, subject to certain considerations, debts should be collected under the direc- tion of the court as if the firms were in bankruptcy, reasonable time for payment being given where the Receiver considers it desirable. I am not satisfied, how- ever, that the actual presence of the agents themselves is necessary: attorneys can be, and in several cases have been, appointed; and if I receive any further com- plaints about the aliens at Seccondee I shall take this course and deport the aliens at the first convenient opportunity.
I have, &c.,
60068
No. 153.
A. R. SLATER,
Acting Governor.
MEMORANDUM ON ACTION TAKEN REGARDING ENEMY FIRMS IN WEST AFRICA, A.-British Colonies.
WHEN war broke out the trade of German houses in Nigeria was suspended to some extent, but the trading with the enemy proclamations were sent out and the German branches resumed business in accordance with the terms of the proclamations.
In Sierra Leone and the Gold Coast we got information that the German houses had not been closed, and were allowed to carry on under the proclamation.
There are no German houses in the Gambia.
"
The Liverpool Chamber of Commerce protested, and upon that it was decided that the policy should be revised. German firms in the East were already being suppressed on the suspicion that they were actively assisting the enemy, but in West Africa the reason was that the local "firms were merely branches with the head offices in Germany, and that it was impossible to stop remittances, etc. Trading by these branches was really allowing the enemy firm in Germany to carry on under our protection.
The Manchester Chamber meantime said that they had no objection to Germans going on trading, but pointed out the difficulty of stopping remittances to Germany and the prejudice to the interests of British creditors if the assets were realized on German account so that there would be none left for the British firm. suggested legislation to give British credito's the right to claim against West African branches.
They
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The Board of Trade, which had been consulted, replied on 24th October to the effect that it would be well to close down enemy firms. They said nothing about realizing the assets. On 30th October we telegraphed to Gold Coast and Nigeria that it was proposed to stop all trading by German and Austrian houses, and suggesting that legal steps should be taken to close them down and to realize assets, paying the British creditors, and placing the balance and sums due to enemy creditors in a special account at the bank. We suggested appointing a Receiver.
The Gold Coast replied that it wasn't practicable to appoint Receivers, but suggested letting firms dispose of their stocks and not letting them import any fresh supplies. We replied that the proceeds should be paid into separate accounts and treated as if the firms were being wound up in insolvency.
Sir F. Lugard (Nigeria) proposed to adopt the procedure suggested and to deport all enemy subjects. This was approved, and he was told to report the procedure by telegram.
Gold Coast were also told to intern enemies. Sierra Leone said they had one enemy firm, the Deutsche Kamerun Gesellschaft. They were told to wind it up.
Nigeria closed its German firms on 7th November, and reported that they were enacting an ordinance, and on 8th December we asked whether the Receiver would have power to collect and sue for debts. They replied that he would, but would not have power to carry out contracts except in special circumstances and with leave of Court." We demurred, and they decided to amend the Ordinance so as to give full discretion to the Receiver. Land and buildings were not to be realized for the present.
Gold Coast sent home their ordinance on 28th December. They appointed Mr. Mitchell, Comptrolling Officer, with power to take over all property, real* or personal, and to pay all admitted debts to British, friendly, and neutral creditors. As to contracts, they had telegraphed to say that they would be dealt with on their merits. We asked whether this meant that the Receiver had power to deal with the contracts at discretion, and whether admitted debts meant only debts which could be proved from the local branch's books. Gold Coast replied in the affirma- tive, saying that the rule as to admitted debts, would rule out most British firms' claims. We were inclined to demur, and suggested amending the law so as to admit other claims. The limit of time for sending in claims in Nigeria was 31st March, and we suggested this to Gold Coast.
On 11th February we sent the Manchester Chamber a list of the liquidate] firms, and on 16th February we issued a Press notice reciting that all firms were being closed down and that they should send claims before 31st March to the Comptrolling Officers or Receivers.
Sierra Leone had enacted their ordinance.
The Gold Coast reported that admitted debts did not bear the narrow mean- ing assigned to it, and that the date for sending in claims had been extended to The date was later 31st March. The ordinances were sanctioned formally. extended to the 30th April.
The position then-about the end of March--was that liquidation was pro- ceeding, the time for sending in claims was open till 30th April, and each branch was being treated separately (ie., there was no question of making up deficits in Sierra Leone from surpluses held by the same firm in Nigeria).
The Manchester Chamber sent two representatives on 25th March, who wanted to lay stress on four points :-
•
(a) That trade was done between the head offices in England and Germany,
so that it was not fair to insist on proof that the debt was due from the branch.
(b) Demanding interest on claims a minor point which was passed over.
(c) Urging compensation for loss of contracts. This was dropped, since
their own counsel shared our view that they could not get any.
(d) Urging remittance of all assets to the Public Trustee.
At the discussion (a) and (d) were the chief topics. The Chamber asked that local debts should be paid and the balance remitted here to the Public Trustee or the Official Receiver. It was pointed out that the question was a very wide one So we told the Colonies not to part with any involving many considerations.
assets pending further instructions, and referred to the Law Officers, who were briefly asked whether :-
* Real property was afterwards excluded.