CO885-(25-26) — Page 313

59407

87

3!

PUBLIC RECORD OFFICE

זוון

Reference :-

EPICO.885/25

49427

SIR,

No. 72.

CEYLON.

COLONIAL OFFICE to FOREIGN OFFICE.

Downing Street, 6th November, 1916.

I AM directed by Mr. Secretary Bonar Law to transmit to you, to be laid before Viscount Grey of Fallodon, the accompanying copy of a despatch* from the Governor of Ceylon with regard to the liquidation of the possessions of enemy planters, together with a copy of the despatch to which it is a reply.

2. The question of plantations belonging to enemy planters has arisen in In Trinidad the evidence obtained in the two Colonies, Trinidad and Ceylon. course of the liquidation of enemy businesses shows that there was an attempt to divert the control of the trade in one of the Colony's chief articles of export from London to Hamburg. In view of this Mr. Bonar Law has decided that the estates of enemy planters shall be completely liquidated, and he is now making inquiries to ascertain how they can be sold to the best advantage. As regards Ceylon, Mr. Bonar Law originally put before the Governor some considerations which might be held to justify discrimination between properties such as business offices and the plantations of individual planters. The Governor has, however, given strong reasons for holding that the influence of enemy planters may be even more dangerous and permanent than that of commercial houses. Mr. Bonar Law recognizes the force of the Governor's arguments, and in view of them he does not propose to withdraw the discretion previously given to him in this matter. Inquiry is, how- ever, being made as to the prospect of obtaining reasonable prices if the properties are sold in the Colony, and as to the advisability of conducting the sale there or in this country.

I am, &c.,

64183

No. 73.

STRAITS SETTLEMENTS.

G. GRINDLE.

THE SECRETARY OF STATE to THE GOVERNOR.

(Sent 6.55 p.m., 14th November, 1916.)

TELEGRAM.

YOUR telegram 9th October. Sturzenegger. Conditions should prohibit sale or transfer, etc., to any corporation with any director who is enemy or enemy subject or with ten per cent, or more of paid-up capital held directly or indirectly for, or at disposal of, enemies or enemy subjects, or to any corporation directly or indirectly controlled by any such corporation as aforesaid.

Legislation should provide as effectively as possible against possibility of any corporation not within prohibition acquiring property and subsequently becoming a corporation as aforesaid.

If necessary, sales should be delayed in order to enable necessary legislation to be passed, but no change need be made if conditions and legislation already prepared contain provisions not less strict than those indicated above.

Despatch follows; you may think it desirable to await arrival.

Any other sales pending should be delayed until receipt of further communi- cation.-BONAR Law.

* No. 70.

+ No. 48.

+ 48118.

No. 74.

STRAITS SETTLEMENTS.

THE GOVERNOR to THE SECRETARY OF STATE. (Received 11th December, 1916.)

(No. 438.)

[Answered by No. 78.]

SIR,

Government House, Singapore, 9th November, 1916. I HAVE the honour to acknowledge the receipt of your telegram of 22nd September in reply to mine of the 4th July† and 5th September last.

2. Your Circular despatch of 15th July, 1916, § to which reference is made in your telegram, indicates the policy which is being pursued by His Majesty's Government in the United Kingdom with regard to the application of the Trading with the Enemy Amendment Act, 1916, but it is difficult to see how that policy can be pursued locally with regard to Ordinance 5 of 1916 in view of the provisions of the Alien Enemies (Winding-up) Ordinance, 1914 (No. XXIX.), for the reasons given below.

3 All businesses indicated in paragraphs 2, 3, and 4 of your despatch, with regard to which it is stated that the policy is to make vesting orders of enemy shares or interests therein under Section 4 of the 1916 Act, would, if carried on in this Colony, fall under the local Alien Enemies (Winding-up) Ordinance, 1914. This Ordinance provides that the business of any company carried on in the Colony may be wound up if one-third or more of the issued share capital of the company is held by or on behalf of enemies or enemy subjects. Under these provisions all companies in which enemy interests exceeded one-third of the issued share capital have been wound up. Consequently there are no businesses in the Colony such as those mentioned in paragraphs 2, 3, and 4 of your despatch which have not been liquidated. It is obvious, therefore, that if the policy pursued in the United Kingdom is to be pursued here, Section 5 of Ordinance 5 of 1916 will be a dead letter. This would be a great pity, as enemy and enemy subject shares in companies registered locally, which do not come within the provisions of the 1914 Winding-up Ordinance, exceed in market value $3,000,000. As instances I may cite the following. In the Straits Trading Company, Limited, enemies' interests amount to 7.2 per cent. of the issued capital and enemy subjects' to 1-4 per cent. The present market value of these interests is, approximately, $1,700,000. In the Tapah Rubber Estates, Limited, enemies' interests amount to 17.6 per cent. of the issued capital and enemy subjects' interests to 45 per cent. The present market value of these interests is $225,000.

4. I may add that it has always been thought here that the provisions of Section 5 of Ordinance 5 of 1916 were specially designed to reach the enemy shares in those companies which could not be wound up under the 1914 Ordinance. In this connexion I enclose a copy of the Legislative Debates of 28th April, 1916, con- taining the speech made by the Attorney-General when introducing the Bill which subsequently became Ordinance 5 of 1916.

I have, &c.,

Enclosure in No. 74.

LEGISLATIVE COUNCIL.

ARTHUR YOUNG.

FRIDAY, 28TH APRIL, 1916.

Trading with the Enemy (Amendment) Bill.

THE ATTORNEY-GENERAL: Sir, I move that the Trading with the Enemy (Amendment) Bill be now read a first time.

This Bill is a transcript of the Imperial Trading with the Enemy (Amendment) Act, 1916, with the exception of those provisions of that Act which give power to the Board of Trade to wind-up enemy businesses in the United Kingdom. Those provisions are not wanted here, for the simple reason that some seventeen months ago

§ 29709.

* No. 68.

+ No. 58.

+ 42410.

PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH—NOT TO