CO129-433 - Governor Sir May - 1916 [5-6] — Page 562

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4.

In reply to my letter to His Majesty's Consul-

General I received a letter dated the 22nd May, 1916, of which I enclose a copy. In view of the contents of that letter and in view of the fact that the Tebong Rubber and Tapioca Estate Ltd., is a China company, I have caused the Custodian to reply simply that he does not at present propose to take any steps with regard to these shares under section 6 of the Trading with the Enemy Second Amendment Ordinance, 1915, (Ordinance No. 22

of 1915).

5.

The case which was contemplated in the enclosures to Sir Everard Fraser's letter of the 22nd May, 1916, is some- -what different from the case of a new issue by a company which is not being wound up and re-constructed, but the decision appears to indicate a policy with which the position taken up in the proposed reply of the Custodian would be at variance.

6.

The reasons which underlay the position taken

up in the letters of the Attorney General and the Custodian of Enemy Property were the uncertainty as to the actual legal po- -sition, the doubt as to the policy of dealing adversely with private rights of property, and the consideration of the possi-

The -bility of retaliatory measures being taken by the enemy. consideration of the matter on these lines seemed the more desirable because it did not appear that any question of assist-

As of course -ance to the enemy during the war was involved.

you are aware, certain aspects of the question are discussed by Mr. R. A. Chadwick at pages 167 to 185 of the Law Quarterly

Review for 1904.

7.

In conclusion I may say that I know of no local reason why the severer policy which is apparently favoured by Sir Everard Fraser should not be adopted if it does not con- -flict with wider principles and interests.

I have the honour to be,

Sir,

Your most obedient,

humble servant,

Governor, &c..