CO129-417 - Public Offices - 1914 — Page 236

32

Trade and Treaty

39091

Decypher, British Consul General (Shanghai)

D.4.30 p.m. R.1.30 a.m.

No.7

He 10 OCT 14

Stember 13th 1914

231

Your telegram No.6

I have told British subjects hitherto that ordinary business transactions completed in China are not prohibited, but that "Commercial domicile" is modi-

fied by extra-territoriality, one effect of which is to close to enemy suitors the Courts which have exclusive jurisdiction over belligerent residents; and so contracts are suspended or extinguished on outbreak of war. There is no means during war of enforcing new contracts, and enemy goods except in -neutral bottoms are at Sea liable to capture and confiscation. I have declined to protest against Bills of Exchange for enemy banks. Our banks in their own interest insist on Bills of Exchange for ship- ments being drawn on British subjects but they release cargo hypothecated to them as it is paid

for by enemy firms. Our Shipping Companies will

not carry enemy goods by sea and will not accept

guarantee of enemy bank for release of import

cargo for which Bills of Lading have not been

produced.

Transactions with local branches of enemy

firms here are almost always on account and for

benefit of firms in enemy Country and concern imports

and exports by sea by and to enemy subjects. May

transfers of shares in our Companies registered in

Hong Kong, other Colonies and in England, be

registered as usual here?

Repeated to Pekin.