COPY.
Enclosure 1.
C.O.
19986
644
Red C JUL. 04/1
Hon. Colonial Secretary,
The powers conferred by Ordinance 3 of 1862 and 3 of 1884 are not intended to be used except for the prevention of illicit or illegal trading in arms, ammunition and warlike stores. There is nothing illicit or illegal in a British subject selling arms and ammunition or other warlike stores to the Japanese. He may trade with Japan in such goods notwithstanding that she is at war with Russia. He may trade in such goods with either belligerent and no doubt there are today thousands of the subjects of this country and of foreign countries so engaged.
But such trade is carried on subject to the war risk of capture. This Government being neutral cannot be a party to the shipment of warlike stores to Japan; but granting permit to a British subject to export explosives in the usual course of trade or in other words refraining from prohibiting the export and thereby hampering and interfering with the usual course of trade cannot for a moment properly be regarded as making this Government party to the shipment. The shipment is by the subject in the ordinary course of trade, the permit is issued by Government also in the ordinary course of the practice prescribed for the purpose of ensuring that the shipments are being made legitimately.
To refuse a permit which except for the outbreak of war would be granted as a matter of course might very reasonably be regarded by Japan as an act of partiality towards Russia.
To sum up: our subjects may sell freely to
COPY.
Enclosure 1.
C.0.
19986
644
Red C JUL. 041
Hon. Colonial Secretary,
The powers conferred by Ordinance 3 of
1862 and 3 of 1884 are not intended to be used except for the prevention of illicit or illegal trading in arms, ammunition and warlike stores. There is nothing illicit or illegal in a
British subject selling arms and ammunition or other warlike stores to the Japanese. He may trade with Japan in such goods notwithstanding that she is at war with Russis. He may trade
in such goods with either belligerent and no doubt there are today thousands of the subjects of this country and of foreign
countries so engaged.
But such trade is carried on subject to
the war risk of capture. This Government being neutral cannot be a party to the shipment of warlike stores to Japan; but granting permit to a British subject to export explosives in the usual course of trade or in other words refraining from prohibiting the export and thereby hampering and interfering with the usual course of trade cannot for a moment properly be regarded as making this Government party to the shipment. The shipment is by the subject in the ordinary course of trade, the permit is issued by Government also in the ordinary course of the practice prescribed for the purpose of ensuring that the shipments are being made legitimately.
To refuse a permit which except for the
outbreak of war would be granted as a matter of course might
very reasonably be regarded by Japan as an act of partiality
towards Russia.
To sum up: our subjects may sell freely
to
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