CO885-(16-18) — Page 6

PUBLIC RECORD OFFICE

Reference :-

.885

16 PUBLIC RECORD OFFICE, LONDON

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

43920.

No. 192.

(AUSTRALIA).

COLONIAL OFFICE to LAW OFFICERS.

[Proposed Imperial legislation for control of the Australian base metal industry.]

Downing Street,

6th November, 1915.

Dear Mr. Attorney-General,

4.

MR. BONAR LAW would be obliged if you would look at the enclosed telegraphic correspondence with the Australian Government respecting the German contracts affecting the Australian base metal industry. You are already familiar with the general position in regard to the German control over this industry and the legislation which has been passed in Australia to put an end to it, owing to your association with the Manningtry" and "Bilbster" cases. You will observe that the Australian Government desire His Majesty's Government to procure the enactment of comple- mentary legislation in the United Kingdom. It will be seen from Mr. Bonar Law's telegram of the 19th July that, after consulting Sir E. Carson, he informed the Governor-General that His Majesty's Government would consider the question of inviting Parliament to declare avoided by war the contracts relating to Australian zinc concentrates, &c., between companies registered in the United Kingdom and German firms, and, from the Governor-General's of the 22nd September that the Australian Government desire that the Imperial Act should deal also with the contracts set out therein, which include contracts to which Australian companies are parties not only with German firms but also with English companies, in particular the Australian Metal Company.

Since Mr. Bonar Law's telegram of the 19th July was sent there has been the judgment of Mr. Justice Bray in the case of Zinc Corporation v. Aron Hirsch. I have only the "Times" report of the judgment, but I enclose a copy of this for convenience of reference, together with copies of

(1) the Australian Enemy Contracts Annulment Act;

(2) the two Australian Trading with the Enemy Acts;

(3) the Governor-General's Proclamation respecting Trading with the Enemy

of the 7th July, and

(4) the Commonwealth Attorney-General's Notification of the 16th July, which declared, in effect, the Australian Metal Company, among others, to be an enemy company for the purposes of the trading with the enemy legislation.

I also enclose a memorandum which I have prepared as a sort of guide through

this intricate maze, together with copies of such of the contracts as are in our possession.

Mr. Bonar Law thinks that the best course would be for you to summon Mr. C. T. Davis and myself to a conference on the subject as soon as you have found time to look through the papers sent herewith, and he would be grateful if appoint an early day for the purpose.

you could

I should add that we have copies of the Chillagoe agreements with the Australian Metal Company and of two agreements between the Mount Morgan Company. I have not had copies of these made but I would propose to bring them with me when you are able to see us.

Yours, &c..

C. TENNYSON.

56419.

MEMORANDUM by THE LAW OFFICERS.

We think that there are objections to legislation declaring specified contracts to be void; but it appears probable that the wishes of the Australian Government will

be met by the passing of an Act declaring:-

1. That a contract for the sale or purchase of Australian mineral products to, or by, an alien enemy shall be void, whether such contract does or does

not contain a clause suspending, or enabling either party to suspend, the operation thereof during the present war.

Contained in Australian No. 229,

(0750-2.) Wt. 7-280, 25, 12/15. D&S. GL