PUBLIC RECORD OFFICE
Reference :-
mmim
C.O. 885
24 PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO
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CEYLON.
4. In view of the assurances afforded me by the Naval Commander in Chief I have not thought it necessary at this juncture to call out the whole of the Volunteer Force. The Ceylon Artillery Volunteers and the Ceylon Engineer Volunteers are already assisting the Regular troops in connexion with the Examination Service, and I am to-night calling out half a battalion of the Ceylon Light Infantry, at the desire of the Brigadier-General, to relieve the Indian Infantry of certain of their duties. I do not propose to mobilize the two Planters' Corps unless circumstances should arise which may seem to indicate a likelihood of their services being more urgently required, as I consider that for the present it is in the interests of the public that they should remain on the estates, where a population of some 500,000 labourers is employed.
5. I have been in communication with the leading representatives of the banks_ and mercantile houses, and am satisfied that the financial position is sound.
6. I have also had an interview with the German Consul and the leading members of his community, and have decided that, having regard to the intimate connexion existing between the local German firms and British houses, as also to their position as large employers of native labour, the best course to pursue is to allow those of them in whose sense of honour confidence may be placed to remain in the Colony on parole. I enclose an extract* from one of this morning's papers con- taining an advertisement published by the leading Germans with my authority, in accordance with an undertaking in the same sense which has been signed by prac-
Mr. Freuden-. tically every male member of the German community in Colombo.
If any berg will trace and deal similarly with the remaining Germans in Ceylon. do not come into this arrangement, I will deal otherwise with them.
43/S
SIR,
I have, &c.,
No. 26.
CEYLON.
ROBERT CHALMERS,
Governor.
THE GOVERNOR to THE SECRETARY OF STATE. (Received 4th September, 1914.)
(Confidential.)
The Queen's House, Colombo, Ceylon, 13th August, 1914. In continuation of my Confidential despatch of the 6th instant,† I have the honour to report the steps taken locally since that date in connexion with the war with Germany.
2. As already stated, your telegram directing the issue of a Proclamation forbidding trading with any person resident or carrying on business in the German Before publishing the required Empire was received by me on the 6th instant. Proclamation I consulted the Attorney-General as to how far the Proclamation must be regarded as affecting the business dealings of the local German community. The Attorney-General gave it as his opinion that the restrictions imposed did not apply to internal trade so long as local firms abandoned all dealings with persons residing or carrying on business in any German Possession.
3. I conferred also with the representatives of the Colombo bankers and of the Chamber of Commerce with a view to ascertaining their opinion as to how far it might be desirable to control or circumscribe the activities of German firms. The managers and agents of the five banks in Colombo expressed themselves in favour of the policy of permitting the German residents to carry on business "provided they are restricted to present engagements, and further commitments prohibited." The Chamber of Commerce, on the other hand, passed a resolution approving the issue of restricted licences to German firms to trade in Ceylon, "provided all exist- ing contracts with German firms shall be considered as null and void, or operative at the option of the party or parties who made such contracts with German firms.”
1 No. 25.
* Not reprinted: Ceylon Independent, 6th August, 1914.
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CEYLON.
4. In these circumstances I decided that it was not desirable that I should make any public pronouncement as regards the applicability of the Proclamation to the dealings of local German merchants; and I accordingly caused the Procla mation to be published without comment.
5. I am aware that in a strict interpretation of the English law all contracts entered into with enemy subjects may be considered to be null and void. But inas- much as an indiscriminate voidance of all such contracts might in many instances react to the prejudice of British firms, I decided that it was preferable that I should deal with the matter by way of an extra-legal procedure, which would admit of each case being dealt with on its merits in such a way as appeared to be With this end in view I most advantageous to the British subject concerned. arranged informally that three gentlemen (Mr. E. R. Waldock, Acting Chairman of the Chamber of Commerce, Mr. Herbert Bois, a member of the Committee of the Chamber, and Mr. E. H. Lawrence, Manager of the National Bank) should be con- stituted a committee to act at their discretion, after the manner of creditors deal- ing with a debtor in difficulties but not necessarily insolvent, in controlling the operations of the German merchants, though with as little active interference as might conveniently be, in such a way as to secure the best interests of the Colony generally, and of British trade in the island.
In every case in which inquiry is made by a non-German subject as to whether it is open to him to deal with a German house, the applicant is referred to the Chairman, Chamber of Commerce, in accordance with whose decision he is expected to guide himself. So far as I can judge, this arrangement is working smoothly, and I have every confidence that the conditional licence to trade thus granted to the German merchants will conduce to the stability of the various local markets and will tend to secure those objects towards which the policy of His Majesty's Govern- ment in regard to trading with the enemy is directed.
6. Your telegram of the 6th instant, informing me of the concession allowed to the Hong Kong and Shanghai, the Chartered, the National, and the Mercantile Banks in regard to the use of a code word in telegraphic messages to London was received by me on the 7th. No mention was made in your telegram of the Bank of The Censor is allowing a Madras, which has an important branch in Colombo. similar concession to this bank in regard to telegraphic communications to India, which will adequately meet its requirements.
7. I also received on the 7th instant your telegram informing me of the issue of a Proclamation prohibiting the exportation from the United Kingdom of cer- tain articles of the nature of arms, ammunition, and naval and military stores, in order to prevent their being used against His Majesty's subjects or forces, and directing the issue of a similar Proclamation locally, under existing legislation, if any, or an act of indemnity. Under the local Ordinance No. 12 of 1900, the Governor has power to issue such a Proclamation, and this is being done. But the procedure laid down involves a reference to the Executive Council in every case and thus entails unnecessary delay. An amending Ordinance will shortly be introduced empowering the Governor, in case of emergency, to issue such a Proclamation with- out reference to the Executive Council, and at the same time expressly enabling him to deal with the parallel case in which it becomes necessary absolutely to prohibit the exportation of arms, ammunition, naval and military stores, or articles of food, on the ground that the available supply is no more than sufficient for the require ments of the Colony. It is proposed to make the Ordinance retrospective in its effect, in order to remove any doubt that may arise as to the strict legality of the provision already issued against the exportation of Welsh coal except for bons fde bunkering purposes.
8. Your two telegrams of the 7th instant, with regard to the arrest and detention of German officers and naval and military reservists, were duly received. It had previously been represented to me by the Inspector-General of Police that a number of German subjects were making their way from India into Ceylon, and that amongst those who desired to sign the parole declaration referred to in para- graph 6 of my Confidential despatch of the 6th instant* were some Germans who were not residents in Ceylon and for whose good behaviour the leaders of the local
* No. 25.