CO129-431 - Governor Sir May - 1916 [1-2] — Page 475

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behalf of the owner of the goods that he was domiciled in a neutral country, viz., China, and that therefore the goods were the property of a neutral and should be released. The Court held, that under extra-territoriality Germans cannot acquire a Chinese domicile either personal or commercial, and must be treated as having a German domicile, in other words, that they were in the same position as Germana living and trading in Germany.

If the Prize Court at Alexandria is correct in its interpretation of the law, it seems to follow that all Germans in China are alien enemies and cannot invoke the neutrality of China to cover their trading.

In that case it is submitted that all dealings between them and British subjects, which have already been declared to be undesirable, have been, from the date of the King's Proclamation, and remain, illegal and prohibited,

My Committee request that this view of the case may be laid before the Board of Trade as supplementary to what was said at the recent Conference on behalf of the Association.

H.M. Under Secretary of State

for Foreign Affairs, Foreign Office,

Downing Street, S.W.

I have, &te.,

F. ANDERSON,

Chairman.

China Association to Foreign Office.

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Our Tientsin Committee have again urged that this question of trading with the enemy in China should be reconsidered by His Majesty's Government, and they express the opinion strongly held by British subjects in China, that trading should be prohibited even if that course involved a sacrifice on the part of certain British traders. My Committee are satisfied that prohibition would involve no sacrifice for the trade of the country as a whole, and if some temporary dislocation of the channels through which a portion of the trade has passed should arise, from eliminating Germans, the eventual result will be to place the trade between this country and China on a sounder basis.

The whole question has recently been re-opened at a meeting of representatives summoned by the President of the Board of Trade on the 4th instant, when those who alvocate the continuance of business with Germans in China, as if a state of war did not exist, had an opportunity of putting forward their case; my Committee hope that the discussion at that meeting will result in a modification of the attitude towards this question hitherto taken by His Majesty's Government.

As bearing further on this matter, my Committee learn that on the 13th of this month the New York Eastern Conference of British shipping lines, decided not to carry any enemy merchandise in their steamers from Manila, China, Japan or the Straits Settlements to America. This decision brings about the somewhat anomalous state of affairs that while Germans in the Far East are restricted to comparatively few American and Japanese steamers for carrying on their trade with America, they still have every facility from British shipping lines for trading with the United Kingdom.

My Committee would respectfully urge that as this question has now been under consideration for an extended period definite steps should be taken shortly to prohibit further trading with the enemy in China during the continuance of the war.

China Association,

SIR,

99, Cannon Street, London, EC.

17th May, 1915.

I have the honour to enclose copy of another telegram from Tientsin on the subject of trading with the enemy, as follows:-

Local feeling regards it as imperative to cut off all business with Germans,

" even at a sacrifice which should be noted is not confined to Manchester urge

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all possible further effort secure stringent legislation to stop German trade

without delay, German misrepresentations directed from German concession

"with the object of undermining British position in China, becoming increasingly

active virulent lying and dangerous."

་་

H.M. Under Secretary of State

for Foreign Affairs, Foreign Office, Downing Street, S.W.

I have, &c.,

F. ANDERSON,

Chairman.

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