CO885-24 — Page 39

PUBLIC RECORD OFFICE

ساتيليسيا

Reference :----

TC.O. 885

24 PUBLIC RECORD OFFICE, LONDON

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

64

CEYLON.

The policy of greater freedom in matters of trade for enemy subjects recom- mended by your telegram of 21st September has naturally led to an increase of business by local German firms (vide paragraph 2 of my despatch of 6th October*), and at the same time to recrudescence of local hostility to enemy subjects on parole among certain sections of the community.

In

There is evidence to show that there is an abnormal increase of trade with Holland, of which the only explanation can be that the goods are intended to find their way into Germany. I am watching the growth of this trade and I regret to find that at least one large British firm appears to be concerned in it. this connexion, and from the detached point of view of Ceylon alone, without knowledge of the other considerations which must be present to the mind of your- self and His Majesty's Government, I ventured to recommend by my cipher tele- gram of 8th October, that the same restrictions should be placed on the export of copra as have already been placed on the export of rubber.

"I found that one local German firm, Messrs. George Boysen & Company, was clearly guilty of attempting to trade with the enemy, and I was therefore obliged to withdraw all privileges granted to the firm and to intern the German subjects connected therewith in Ragama Camp.

I propose to address you more fully on this subject at a later date when my information is more complete.

8. As foreshadowed in paragraph 6 of my despatch of 6th October,* I am addressing you in a separate despatcht by this mail on the general financial situation of the Colony as affected by the present war.

9. The general state of the Colony remains satisfactory. There is at present little, if any, distress or unemployment and the export trade has improved with the increase of tonnage available. There was some anxiety as to the supply of rice, but the position has been relieved by the recent arrival of large shipments, while a further large supply is now in sight, so that prices are falling again.

10. There is a good demand at fair prices for the general produce of the Colony with the exception of plumbago, which is at present being held up to some extent in the hopes of better prices later on.

I have, &c.,

44885/8

SIR,

No. 98.

ROBERT CHALMERS,

Governor, &c.

THE GOVERNOR to THE SECRETARY OF STATE. (Received 14th November, 1914.)

(Confidential.)

The Queen's House, Colombo, Ceylon, 22nd October, 1914. In continuation of my Confidential despatch of 15th October last, I have the honour to acknowledge receipt of the following telegraphic despatches:-

(a) Your cipher telegram of 16th October, with reference to the posi- tion of local German firms and the possibilities of leakage of important information.

To this I replied by my cipher telegram of 17th October, informing you of my views on the matter, and at the same time pressing for a decision on my telegram of 8th October, and recommending restrictions on the export of plumbago. (b) Your telegram of 17th October, in answer to my telegrams of 9th, 10th, and 15th October, regarding the insurance of the prize steamship "Fürth."

This welcome telegram set at rest my anxiety as to the disposal of this ship. Local shippers are satisfied with your decision and desire to express their gratitude for the relief thus afforded to local shipping business.

• No. 84.

↑ 48590: not printed.

↑ No. 85.

65

CBYLON.

I replied to you by my telegram of 20th October, informing you that the Court had ordered, not the sale of the "Fürth" but only her condemnation, and that she is not entitled to the benefit of Article II. of Hague Convention No. 6. The cargo has been ordered to be unloaded and warehoused at Colombo-except lead and zinc concentrates, which have been ordered to be warehoused in London, and are to be conveyed there in the "Fürth."

I apprehend no further difficulties in the disposal of the "Fürth," which will, I hope, leave shortly for London. As requested, I will send a full report in due

course.

(e) Your cipher telegram of 18th October, requesting me to prohibit the export of plumbago except to the United Kingdom and her Allies. This was in reply to my telegram of 17th October, in which I conveyed to you an expression of my suspicions of a certain local Swiss firm, and recommended the prohibition of export of plumbago with conditions similar to those in force as regards rubber, suggesting at the same time that the London branch of the same firm might well be watched.

As your telegram went beyond the practice already adopted in the case of rubber, and as the matter appeared to me to be of prime importance, I felt justified in addressing to you a further telegram in cipher on 20th October, requesting But before my second telegram confirmation before the Proclamation was issued.

could have reached you, I received your further cipher telegram of 20th October, instructing me to prohibit the export of plumbago entirely except to British ports.

Steps are being taken to give effect to these instructions.

port.

(a) Your cipher telegram of 19th October, asking for certain particulars as to the numbers, the date of sailing, etc., of the Ceylon contingent. This information will be furnished in due course, when the vessel has left this

(e) Your telegram of 19th October, informing me that prisoner of war H. Heinemann is not protected by Article 9 of the Convention of Geneva, and might therefore be detained.

I have directed that your decision be conveyed to Dr. Heinemann.

(f) Your cipher telegram of 20th October, conveying to me a further expression of the Admiralty's views on the liberty allowed to local Germans and

I your own instructions thereon.

I refer to this matter in a later paragraph in this despatch.

(g) Your cipher telegram regarding the necessity for keeping open trade routes, and for avoiding the unnecessary detention of merchant shipping.

Every effort has been made, by and in conjunction with the local naval authorities, to avoid all unnecessary restrictions on the movements of merchant ship- ping; no steps have been taken in this matter except at the instance of the Senior Naval Officer in Colombo. The recent exploits of the "Emden" (news of which reached me on the 20th instant) have led to temporary restrictions on the movements of shipping, as reported in my telegram of 21st October. The trade routes have again been declared open from to-day

(*) Your telegram of 20th October, requesting me to prohibit the exporta- tion of rubber except to British ports.

(i) Your cipher telegram of 20th October, requesting me to prohibit the exportation of copra and foodstuffs, etc., except to the ports of certain specified countries, and directing similar restrictions on the export of articles in the lists of absolute and conditional contraband, and of other articles specially mentioned.

The necessary Proclamations to give effect to the instructions contained in this and the last preceding telegram (A) are now being prepared.

2. With reference to my telegram of 15th October, regarding the remaining

," "Moltkefels,” “*** Rappenfels," and "Australia"), to which prize ships ("Steinturm,” referred in paragraph 1 (e) of my despatch of 15th October,*I have to inform you that I received on 21st October a further communication from the Viceroy of India, making certain proposals for the use of these ships.

The "Rappenfela" will leave for Calcutta within the next few days, and the Viceroy's proposals regarding the others ships are still under consideration.

P

* No. 35.