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C.O. 885

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APPENDIX D.—MISCELLANEOUS.

No. 1.

REPORT OF THE CONFERENCE HELD ON THE 10TH SEPTEMBER, 1914, UNDER THE PRESIDENCY OF HIS MAJESTY'S PROCURATOR GENERAL, TO CONSIDER THÈ SUGGESTION THAT BRITISH PRIZE COURTS SHOULD BE AUTHORIZED EITHER TO SEND ON CAPTURED ENEMY VESSELS TO THE PORT OF THEIR ORIGINAL DESTINATION WHEN SUCH A COURSE IS AT ALL PRACTICABLE, OR-IN THE ALTERNATIVE TO PERMIT THE CARGO TO BE TRANSHIPPED AND SENT ON IN ANOTHER VESSEL.

THE following gentlemen were present:

Sir John Mellor, K.C.B., H.M. Procurator General,

G. L. Barstow, Esq., C.B., representing the Treasury,

A. H. Dennis, Esq., C.B., Assistant Solicitor to the Treasury,

W. J. Evans, Esq., representing the Admiralty,

R. H. Headley, Esq., representing the India Office,

H. W. Malkin, Esq., representing the Foreign Office,

G. Roper, Esq., representing the Board of Trade,

Admiral Sir E. J. W. Slade, K.C.I.E., K.C.V.O., representing the

Admiralty, and

C. B. L. Tennyson, Esq., representing the Colonial Office.

This Conference was summoned by the Procurator General in accordance with the suggestion made in a letter, dated 8th September, 1914, from the Foreign Office, from which it appeared that Secretary Sir Edward Grey had had representations made to him from Lloyds and other influential shipping bodies, submitting that British Prize Courts should be authorized either to send on captured enemy vessels to the port of their original destination when such a course was at all practicable, or, in the alternative, to permit the cargo to be transhipped and sent on in another vessel, it being urged that the discharge of cargo at an intermediate port would It was suggested generally cause unreasonable loss to the owner of the cargo. that the most convenient way of dealing with the question would be for repre- sentatives of the Departments above mentioned, who had also been approached, to discuss the matter in a Conference.

The question had arisen in particular with regard to certain special cases, the facts of which are as follows:-There have been seized as prize at Cape Town a number of German ships containing cargoes which are, in the main, British cargoes to State Governments, public bodies, or private owners in consigned either

It is understood that there is a small portion of Australia and New Zealand. cargo owned by enemies on these ships, but not of such a considerable amount as to affect the practical consideration of the question. It was represented to the Conference and they have no reason to doubt the statement that a sale either of the ships or of the cargoes at Cape Town could only be effected at great loss to those who may be entitled, and, further, that there are no facilities for tranship- ment at Cape Town, except at prohibitive expense.

The Conference had the advantage of a personal statement by the Right Honourable Sir George H. Reid, G.C.M.G., LL.D., K.C., High Commissioner for the Commonwealth of Australia, who attended to represent the desire of his Government that every effort should be made to forward to their Australian He strongly confirmed the importance, in the destinations these British cargoes. interests of all concerned, of securing that no sale should take place at Cape Town. It was generally agreed by the Conference that the existing Prize Court legislation and rules do not provide any procedure which would enable the object in view to be attained unless it could be done by the method which the Conference venture to suggest. The method proposed is that these ships, which are the subject of prize proceedings in the Prize Court at the Cape, should, notwith- standing that they are not required for Admiralty purposes, be requisitioned by the Admiralty under Order XXIX. of the Prize Court Rules, and navigated on to the port of ultimate destination, with their cargoes, in the manner hereinafter described. It did not appear to the Conference that the rules provide for any- thing in the shape of a hiring or temporary requisitioning by the Admiralty. The only form of requisition contemplated by the rules is a procedure by which the Admiralty would become the out-and-out owners of the vessel. It would appear that, under this procedure, it might be necessary for the Crown, whether with or without previous appraisement, to pay into Court the value of the ship. It should be pointed out in this connexion that these particular ships, having been captured

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in port at the outbreak of war, are not liable to confiscation but only to detention during the period of the war, under the Hague Convention No. 6 of 1907. The money paid into Court will, therefore, not revert to the Crown, on condemnation, but will be retained in Court to meet the claims of the German owners at the conclusion of the war.

It should be pointed out in this connexion that the value assessed by the Court may not correspond to the amount of compensation to which the German owners may be entitled under the Convention at the conclusion of the war, since the true basis of this compensation will probably be the value which the ship would have possessed if it had been delivered to the owners at the port of capture at the termination of the war, after detention there during the war.

Alternatively, it would be desirable, if practicable, to arrange that the ship should be returned to the German owners at the conclusion of the war, the money paid into Court-with any interest accrued thereon-being thereupon returned to the Crown.

It was, however, considered by the Conference that, having regard to Order XXIX., rules 3 and 4, it might be found unnecessary that any actual payment into Court should be made by the Crown, but that the proper officer of the Crown should be authorized to give such undertaking in lieu thereof as might be received by the Court.

The Conference considered this question so far of importance that, if not practicable under the rules as they stand, the question of amendment should be considered, both with a view to giving the Court power to accept an undertaking and also to make such provision as might facilitate a temporary requisition.

The representative of the Treasury desires to point out that it is at least doubtful if the Treasury would provide money for carrying out transactions of this sort on a large scale if actual payment into Court is required, as the locking up of large sums of money during the war would cause great loss to the Exchequer. If in future cases the ships are not within the Convention and are liable to confiscation on condemnation, the question of payment into Court may not be so important, inasmuch as the Crown' would, in the absence of a grant of prize proceeds, become entitled to the proceeds on condemnation.

In any event, the ship would on requisition become the property of the Government and it was considered that it would be well for her to be registered under the Merchant Shipping Act, 1906. section 80, or under the corresponding provision (if any) of the law of the Union of South Africa.

It is suggested by the Conference that the requisition should, in this particular case, extend to such enemy cargo as cannot be conveniently landed at the Cape.

As regards the British cargo, the Conference propose that it should be released by Order of the Cape Prize Court on consent of the proper officer of the Crown there.

Before this release is granted it would be necessary that the owners of this officer proper cargo should either have proved their title, to the satisfaction of the of the Crown, or should have given to the Court bail or other sufficient security for the value of the cargo.

It was understood by the Conference that those who are working in the matter on the part of the cargo owners would be prepared to satisfy one or other of these conditions in order to enable the cargo to be released.

The ships, having thus become the property of the Crown, could be navigated to their port of destination, either by the Government or under charter with those The Conference were informed that the latter representing the cargo owners.

course is the more practicable, and they considered, therefore, that it should be Difficulties in obtaining crews may, of course, be recommended for adoption. experienced locally.

Whichever of these two courses be adopted the cargo owners must insure the ship and enemy cargo (if any) to their full value, for the benefit of the Govern- ment against all risks (including war risks) for the voyage to her port of destination. If the ship be navigated by the Government they must also give guarantee for the payment of expenses occasioned to the Government by such navigation, and it is also suggested by the Conference that they should guarantee the Government against any further claims that may be made against it over and above the money paid into Court (or covered by a Government undertaking) by the owners of the ship and enemy cargo or other interested parties.