CO885-(15-16) — Page 688

97 Prize.

PUBLIC RECORD OFFICE

Reference :-

TLC.O.885

16 PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH NOT TO

-

No. 181.

GENERAL.

MEMORANDUM AS TO PROPOSED UTILIZATION OF DETAINED ENEMY SHIPS IN TRADE, WITH THE OPINION OF THE ATTORNEY-GENERAL ANNEXED.

The Oversea Prize Disposal Committee, in view of the great scarcity of tonnage, has recommended the utilization of the enemy ships which have been sentenced to detention during the war, in accordance with Articles 2 or 3 of the Hague Convention No. VI. The view of the effect of those articles which has so far been adopted is that, provided the ships are returned to their owners at the end of the war in reasonably good condition, the owners are not concerned with what is done with them during the war, and have no claim for any money which they may earn in the course of it. The Foreign Office have recently proposed that these ships should be insured and that ship keepers should be provided, it being hoped that the cost of these measures can be recovered from the enemy Government as part of the terms of peace.

The method proposed for making use of these ships is that they should be requisitioned by the Admiralty under Order 29, Rule 4 («) or 4 (b), and should then be chartered to British shipowners on time charter. It will be also necessary for them to be given a British register as Government ships under Section 80 of A the Merchant Shipping Act, 1906, and the Order in Council of March 22nd, 1911. It is conceived that this procedure is in harmony with the provisions of the Conven- tion No. VI above referred to, and that no difficulty will arise in restoring the ship to the owner at the end of the war in lieu of paying him her value.

B

The question on which it is desired to obtain the opinion of the Attorney- General is whether it would be safe to allow ships which have been dealt with in this manner to enter a neutral port. It appears that there are two possible risks :— (1) An attempt might be made by the original owners to claim these ships

as their property, by action in the local Courts.

(2) A neutral Government might conceivably claim to regard them as public ships and to submit them to such disabilities as, for instance, the twenty-four hours rule.

As to (1), it is conceived that any Court would recognize the transfer of title which has been effected in the manner above described, but there may be some possibility of a vexatious delay being caused by proceedings in the Court of a neutral.

As to (2), it may be worth while to mention that in the case of the " Schneefels," a German ship which has been condemned, but which is being allowed to complete her voyage to the United States before sale, and discharge her cargo there, His Majesty's Government have intimated semi-officially to the United States Govern- ment that they do not expect this ship to be treated as a public ship. In this case it was, however, arranged that the ship should be registered in the name of an individual. The Committee would be very grateful if the Attorney-General would indicate whether, in his opinion, either of the above risks is sufficiently serious to D render it necessary that a stipulation should be made when chartering these vessels that they should only trade with ports in the British Empire or with allied countries. They would also be glad to know whether, in the opinion of the Attorney-General, there is, in this connection, any difference between the position of a ship which has been permanently requisitioned under Order 29, Rule 1 or 4 (a), and of one which has been temporarily requisitioned under Order 29, Rule 4 (b); and, further, whether the position is affected if an undertaking in writing is given to the Court instead of the appraised value of the ship being paid into Court, under F Order 29, Rule 4 (a); and, in view of the case of the " Schneefels," which has been mentioned above, they would be grateful to be informed whether there is any difference, in this connection, in the position of a ship which has been registered under the Order in Council of 1911 as a Government ship and that of one which G has been registered in the name of an individual.

E

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(378)-) Wt. 7-939. 25. 4/15. D&B. 1.