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Contracts, page 184, but that it is understood that the rights flowing from this permission will be confined to entirely new transactions carried on by them for their own benefit and not for
the benefit of their partners in Germany.
11. If these persons are to be allowed to trade here I think that they should be given to understand that the permission is only to trade on their om account, and that they must not enter into any transactions on behalf of their former partners in Germany. I think that we might fairly ask them to change their trading names
but that need not be decided at the mome and adopt their own names, moment. I think also that before notifying the permission to the various firms we ought to ask for an explanation from those firms which there seems some reason to believe are carrying on their business under the shelter of the name of a British employee. If the explanation should not be satisfactory it would be well to consider whether we ought not to go to the extreme length of expelling the enemy subjecta concerned, and, should evidence be forthcoming, of prosecuting the British subject involved. It must not be forgotten that other firms than those named may be doing the same thing less publicly.
12. I do not of course suggest that the view which I have expressed about "licences" is clearly the right one, but I think
that it is the correct one.
13. The view has been expressed that it would be desirable to define beforehand the rights conferred by the permission to remain here given to enemy subjects, rather than that it should be left to the Courts to construe them hereafter. I think that it would be very unwise to do so, especially when no such definition of rights has been formulated in England, so far as we know.
14. Though it does not affect the discussion, I would like to add that I have not overlooked the doctrine that in the case of a merchant who has businesses in different places enemy character n may depend on the country in which a particular commercial trans- -action has originated, but I confess that I have found great difficulty in applying it to the conditions of modern commerce.
23.8.14.
(sd.) J.H.Kemp, Atty.-General.
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