CO129-426 - Public Offices - 1915 — Page 18

15

from becoming a base of supply for the armed forces of the

enemy.

3.

In the opinion of Their Lordships such prohibition

by a neutral can only be reasonably expected from neutral

countries, which under normal peace conditions do not export

coal, and whose legitimate interests do not become involved. In such cases, however, Their Lordships consider that such

a step is perfectly proper and legitimate.

4.

In consequence of this view being adopted by the

South American States the condition of the South Atlantic and

East Pacific is now satisfactory.

5.

A parallel condition does not, unfortunately, exist in the Tast Indies where the presence of large stocks of coal

and of a large number of German ships lying idle afford an assured base of supply to enemy cruisers unless some similar action to that adopted by the South American States is put into

force in this zone.

6.

Their Lordships are desirous of removing this potential menace to the trade of the British Empire and of Japan and in order to effect this they are desirous that the Governments of the United States and of Holland should be approached with a view to acquainting them with the danger of the present position and suggesting that it may, at any time, become necessary to prohibit the export of British coal to such countries as do not prohibit effectively the re-export.

7.

I am further to add that prohibition of export to particular consignees is already in force, but that Their Lord- ships consider that it cannot properly be used as a means of

obtaining