CO885-(16-18) — Page 20

54384/15

No. 198.

(GENERAL.)

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COLONIAL OFFICE to LAW OFFICERS.

[Status of enemy small craft in British territorial waters at the outbreak of war.]

GENTLEMEN,

Downing Street,

19th April, 1916.

I AM directed by Mr. Secretary Bonar Law to request that you will favour him with your opinion on certain points which have arisen in connexion with certain tugs, lighters, and other small craft belonging to persons of enemy nationality and employed by them at the outbreak of war in the territorial waters of various British Colonies and Protectorates. A list of these vessels is given in the enclosed state- ment, which must not, however, be taken as complete.

So far as Mr. Bonar Law is aware these vessels are in no case registered as British ships, nor do they fly any flag, and, with the possible exception of some of the vessels at Hong Kong, it would seem that the owners must in all cases be regarded as having their commercial domicile in enemy territory.

The

3. Mr. Bonar Law is advised that such of these vessels as belong to owners commercially domiciled in enemy territory or to enemy subjects domiciled in China, Siam, or any other country in which their State possesses extra- territorial rights could properly be made the subject of prize proceedings. question arises, however, whether, the vessels must be held entitled to the benefit of Hague Convention No. VI. of 1907. It may with much probability be assumed that they were in all cases actually in British ports at the outbreak of war, and it may also be assumed that for some considerable time after the outbreak of war no steps were taken to prevent them leaving British waters had they wished to do so.

4. If the vessels must be held entitled to the benefit of Hague Convention No. VI., Mr. Bonar Law is unwilling to cause prize proceedings to be instituted; for the reason that in the cases of all these vessels the local branch of the owning firm or company has been, or is being, liquidated by the local Government under special legislation. Some of the vessels in question have actually been sold in these liquida- tions, and all could be so sold, the proceeds of the sale being used for the payment of non-enemy creditors of the liquidated firms or, in the case of a surplus of assets, being held by the Government pending the conclusion of hostilities. If these vessels must be held entitled to the benefit of the Hague Convention, Mr. Bonar Law would prefer that prize proceedings should not be instituted against them, but that they should be treated as part of the assets of the local establishments of the owning firms.

5. In this connexion I am to enclose, for your information, a copy of an opiniont of Mr. Pearce Higgins on the position of vessels of this kind under Hague Convention No. VI. of 1907.

6. If it is considered that these vessels are liable to condemnation by the Prize Court the further question arises whether the proceeds of sale of such of them as have in fact already been sold by the liquidators of the enemy firms to which they belonged would be liable to condemnation by the Prize Court.

7. I am, therefore, to request that you will take the accompanying papers into your consideration and advise:

(1) Whether in your opinion the vessels now in question are or are not entitled to the benefit of Hague Convention No. VI. of 1907, assuming that they were in all cases found in British ports at the outbreak of war, and,

(2) Whether your answer to question (1) would be affected, and, if so, in what manner, should it prove to be the case (a) that no steps were taken to prevent these vessels leaving enemy territory for some weeks after the outbreak of war, or (b) that steps were taken to prevent them leaving British territory immediately on the outbreak of war.

(3) If your answer to (1) is in the negative, whether in a case where a vessel which has been sold by the official liquidator of the owning firm or company would have been liable to condemnation by a Prize Court the proceeds of sale of that vessel are liable to condemnation, and

Not printed.

(18778-2.) Wt. 15-45. 25. 8/18. D & 8. G. 1.

† Attached to 54384.

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PUBLIC RECORD OFFICE

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Reference :--

C.O.885

16 PUBLIC RECORD OFFICE, LONDON

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