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PUBLIC RECORD OFFICE

Reference :-

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PUBLIC RECORD OFFICE, LONDON

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

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power was given by this Legislature to the Governor to wind up all enemy businesses- that were being carried on in this Colony; and under that ordinance all enemy firms and all enemy companies have been, or are being, wound up.

But the other provisions which are in the English Act, and which are embodied in the Bill now before this Council, are very important, and, indeed, may be described as provisions complementary of our Winding-up Ordinance.

Now under our Ordinance, the Winding-up one of 1914, every company one- third of the share capital of which was owned by enemies or enemy subjects could be wound up, and, as I said a moment ago, they are being wound up. But a company which has enemy shareholders who own less than thirty per cent. of the share capital of that company cannot be wound up under the Winding-up Ordinance, and, indeed, it is not desirable that they should be wound up, because the company, having less than thirty per cent. of its shares in value in the hands of enemies, are not enemy companies, and are predominantly either English or Allied companies, or neutral companies. Therefore it is not desirable that they should be wound up.

But it is desirable that something should be done. It is desirable that these companies should be purged of their enemy shareholders, although these share- This Bill, and particularly Clauses holders are less than thirty per cent. in value.

5, 7, and 8, will enable these enemy shareholders to be got rid of, and their places to be taken by British shareholders or non-enemy shareholders.

Under these clauses power is given to the Governor in Council to vest all enemy property in the Custodian, with power to sell such property; and when I say enemy property I mean not only property belonging to anyone residing in an enemy country but property belonging to a person of enemy nationality, no matter where he is, in a British, Allied, or neutral company.

Power is given to vest all such property in the Custodian, with power to sell and transfer such property. Under a vesting order, therefore, shares belonging to an enemy shareholder can be vested in the Custodian, and power to transfer those shares can be conferred on the Custodian; and the Custodian, with those powers, can under the Bill transfer those shares to the company itself which issued those shares, if the company obtain the consent of the Governor in Council to the purchase of those shares. Of course, power is given to the company to reissue those shares. Of, if the company does not think it fitting to acquire shares, the Custodian can sell or transfer those shares to a British subject, or to any subject who is not an enemy subject.

Therefore, under this Bill it will be seen that all enemy shareholders in com- panies, that is, companies having enemy shareholders owning less than thirty per cent. of the share capital, can be got rid of; and, therefore, with this Bill on the statute book and with the Winding-up Ordinance that is already there, it will be our own fault if we do not eradicate completely from this Colony not only enemy companies but all enemy shareholders.

But there are other useful provisions in this Bill than the one which I have referred to. Another very useful provision is to be found in Sub-section 2 of Clause 10. That provides that no shares can be transferred to any enemy subject, that is, to any person of enemy nationality, no matter where he is residing." At present, under the existing law, shares can legally be transferred to persons of enemy nationality provided that they are not residing in the enemy country. There- fore at the present time any share can be transferred in Singapore to a man of enemy nationality residing in Java. That should not be so, and this provision now All such transfers shall be regarded as prevents it from occurring in the future. void and of no effect at all.

There is also another very useful provision which is to be found in Clause 6. That provides that all ordinances passed in this Colony and all proclamations having effect in this Colony regarding enemy property shall not end when the War ends, but shall continue, after the War, of full force and effect until they are determined by order of the Governor in Council. That is an extremely useful pro- vision, and, indeed, I may say that that provision reaches the high-water mark Sir, with these remarks I of legislation so far as enemy property is concerned.

move that this Bill be now read a first time.

MR. SAUNDERS : Sir, I beg to second the motion.

The motion was agreed to.

The Bill was read a first time

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THE ATTORNEY-GENERAL: Sir, as this Bill is a matter of urgency, dealing, as it does, with enemy property, a certificate of emergency has been signed in accord- ance with the terms of Standing Order XLI. of the Standing Orders of this Council. That certificate I now lay on the table, and I now move that our Standing Orders relating to the publication, reading, and commitment of Bills be suspended to enable this Bill to be carried through all its stages at this sitting.

MR. SAUNDERS: Sir, I rise to second the motion.

The motion was agreed to, and the Standing Orders were suspended. THE ATTORNEY-GENERAL: I move that this Bill be now read a second time. MR. SAUNDERS: Sir, I rise to second the motion.

The motion was agreed to.

The Bill was read a second time. THE ATTORNEY-General: Sir, I now itself into Committee to consider this Bill.

Council in Committee.

In the marginal note to Clause 2 "definition."

Council resumed.

move that this Council do resolve

"definitions"

was made singular-

THE ATTORNEY-GENERAL; Sir, I have to report that this Bill has passed in Committee without amendment. I move that this Bill be now read a third time.

THE TREASURER: Sir, I rise to second the motion.

The motion was agreed to.

The Bill was read a third time and passed.

51252

No. 75.

THE SECRETARY OF STATE to THE GOVERNORS, &c.* [Answered by No. 84.]

(Circular (2).)

Downing Street, 20th December, 1916.

SIR,

WITH reference to Mr. Bonar Law's Circular despatch of the 1st of August. last, I have the honour to inform you that I have further considered the question of the conditions of sale of the permanent assets of the enemy firms now in liquida- tion in the Colonies and Protectorates.

2. I have now come to the conclusion that the objects indicated in the Circular despatch of 1st August can be more satisfactorily obtained by legislation than by the means suggested in that despatch. The procedure by means of a bond has been found inconvenient here and elsewhere as tending unduly to hamper the title to the property sold, and it is, morever, unsuitable if the restriction is to be con- tinued indefinitely or for a long period. In this connexion I enclose copies of a draft ordinance which has been drawn up for use in connexion with the recent sales of enemy property in Nigeria. You will observe that clauses 9-13 of this draft are devoted to the exclusion of enemy interests, and you should take the necessary steps to secure legislation on the lines of the relevant clauses of the draft before proceeding with the sales of any enemy property in the territory under your administration. In adapting these clauses of the draft ordinance you should sub- stitute in paragraph (b) of the definition of " corporation under enemy control" (see section 2) for the words "shares or stock representing ten per cent. or more of the paid-up capital" the words "ten per cent. or more of the issued capital of voting rights."

3. I have also come to the conclusion that, as a general rule, and in the absence of special reasons to the contrary, only British subjects should be allowed to become purchasers of these properties. If you are not aware of any such special reasons in the Colony or Protectorate under your government you should, on receipt of this despatch, proceed with the necessary arrangements for the sale of the properties concerned. If, however, you consider that there are any special circumstances which make it desirable not to confine the sales to British purchasers, I request that

*Hong Kong, Straits Settlements, Ceylon. Gold Coast, Sierra Leone. Uganda. East Africa

Protectorate, Zanzibar, Nyasaland, Jamaica, Trinidad, British Guiana. + No. 82.