CO129-420 - Governor Sir May - 1915 [1-2] — Page 85

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above

As the Colonial Secretary said, in his letter of 28th February, 1913, Section 3 (2) of the Ordinance, quoted, is "a dead letter".

Mr. Severn, the Colonial Secretary, in his letter of 14th September to Mr. Toller above referred to, in replying on R. v. Arnaud, assumes that the "Phranang" is owned by the

It appears, Phranang Steamship Company, Limited of Hongkong. however, from Mr. Toller's examination of the ship's papers that on the Articles the registered Managing Owner is Mr. Bune. Mr. Bune is a Hongkong German at present resident in Manila.

In R. v. Arnaud the decision was based on the fact that registration was there sought in the name of a British corporation however composed,

In the present case the "Phranang" does not appear, from the correspondence before me, to be registered as the property of a British corporation and therefore having no claim

Even if it were re- on that ground to fly the British flag. gistered as the property of a Hongkong British Company that would not confer upon it a right to trade with the enemy. If my view is correct that a German or Austrian subject or comercial establishment in China, subject in no way to its jurisdiction, enjoying full exterritorial privileges and unable to there acquire even a commercial domicile has no neutral or quasi neutral status, then the "Phranang" is trading with the enemy and her owner or owners if, and in so far as they are, amenable to British jurisdiction can be dealt

with accordingly.

I have the honour to suggest that this view of the