CO885-(15-16) — Page 692

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PUBLIC RECORD OFFICE

ו דון וווו

Reference :-

C.O.885

16 PUBLIC RECORD OFFICE, LONDON

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

2

Sir E. Grey would also be glad to be favoured with any observations of a general nature which you may be good enough to offer.

I have, &e..

EYRE A. CROWE.

13683

List of Papers.

(File 7018/15.)

(File 7018/15.)

(A.) Swiss Minister, January 12, 1915. (B) Swiss Minister, January 28, 1915.

(C.) Swiss Minister, February 8, 1915. (File 7018/15.) (D.) Swiss Minister, February 13, 1915. (File 7018/15.)

(E.) Italian Embassy (Memorandum), January 30, 1915. (File 7018/15.) (F.) Director of Military Operations, January 18, 1915. (File 8184/15.) (G.) War Office, February 2, 1915. (File 7018/15.)

(H.) German Embassy (Memorandum), March 5, 1902.

(I.) Netherlands Minister, March 18, 1902.

(J.) Law Officers, March 31, 1992.*

REPORT.

We are of opinion that His Majesty's Government is justified in censoring letters which, in the course of transit from one neutral country to another, passed through British territory. We agree with the view expressed by our predecessors on the 31st March, 1902,* when reporting on a similar question. It is obvious that a state of war suspends the application of Article 4 (1) of the Universal Postal Convention as between the belligerents themselves, and this shows that it is one of those Agree- ments which are only intended to operate in their entirety during a state of peace. It would indeed be a ridiculous construction of the Convention to suppose that it bound a belligerent State to make itself the conduit-pipe for communications intended to defeat its own measures of war.

Law Officers' Department,

JOHN SIMON.

STANLEY O. BUCKMASTER.

March 31, 1915.

No. 138 in Vol. VI.

GENTLEMEN,

No. 183.

(WEST AFRICA.)

COLONIAL OFFICE to LAW OFFICERS.

[Liquidation of enemy firms established in Nigeria, Sierra Leone, and the Gold Coast.]

Downing Street,

29th April, 1915. I AM directed by Mr. Secretary Harcourt to inform you that the Governments of Nigeria, the Gold Coast, and Sierra Leone have found it necessary, for military and political reasons, to remove from those Colonies, for internment in the United Kingdom, the German, Austrian, or Hungarian employés of branches of firms of these nationalities established in those Colonies, and to close the branches in question. Liquidating Officers have been appointed by orders of the Supreme Courts in the case of Nigeria and Sierra Leone, and by the Governor in the case of the Gold Coast, to wind up the affairs of these branches. Copies of the Ordinances and orders of court under which the Liquidating Officers have been appointed are enclosed.

2. The enclosed copy of a notice which was published in the Press in this country on March 29th gives the names of the firms which have been placed in liqui dation. It will be observed that in several cases the same firm has branches in more than one of the Colonies.

3.

When the Liquidating Officers have sold the stocks in hand and have got in the other local assets of these firms, the question will arise as to how they should deal with them, and, in particular, what classes of debts they should pay on behalf of the liquidated branches or firms. In West Africa, with a few exceptions, all European firins having establishments there control the business of these West African branches very closely from the head offices in Europe. The staff of the West African branches consists of a local manager, who is practically never a partner in the firm, and his subordinates, and even the manager appears to be usually given but little discretion. In the case of trading firms, he sells the goods which the head office sends him from Europe or the United Kingdom, and he consigns to the head office or to their order the produce which he buys from the native producers or middlemen, and the head office disposes of such produce. As a result practically all the wholesale trans- actions take place, not between the branch in West Africa and other firms in West Africa or Europe, but between the head office and other firms in Europe (including in this term the United Kingdom). Accordingly, in the case of German or other enemy firms established in British West Africa, most of the debts due to manufacturers in the United Kingdom for goods which have been supplied before the war to the branches in liquidation are due by the head offices in enemy territory in Europe, with whom alone the British manufacturers have had contractual relations; and the same is probably to a large extent the case with debts due by firms in the United Kingdom in respect of produce exported from British West Africa by the branches now in liquidation of enemy firms.

4. It has been suggested to Mr. Harcourt that debts due by head offices in enemy territory to British firms or to firms belonging to allied or neutral countries should be paid from the assets of branches in British West Africa of enemy firms which are in liquidation, although the creditor firm has had no direct relations with the branch in British West Africa of the enemy firm, and although the claims of British firms on the head offices of the debtor firms in enemy territory are suspended while the war lasts.

5. If this course were adopted, the question would arise whether such debts should rank equally with debts due directly by the British West African branches to (a) creditors in British West Africa; (b) creditors in the United Kingdom; (c) creditors in allied or neutral countries; and, if not, in what way the various classes of debts should rank for payment out of the British West African assets. A firm in liquidation in British West Africa may, of course, have branches and assets in French or Belgian Colonies in Africa or in Colonies belonging to neutral Powers. The question would also arise as to the best procedure for carrying out such a course. It has been suggested that the value of the British West African assets when realised should be remitted to this country, either before or after local creditors had been satisfied, and that the distribution of assets so remitted should be entrusted to an officer of the Supreme Court here or to the Public Trustee.

(5152–2.) Wt. 7-939. 25. 12/13. Da R. G.1.

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