CO129-441 - Governor Sir May - 1917 [1-3] — Page 251

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ENCLOSURE 2.

248

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Lob avad 97

„Jetæð & nosnizite (.ha)

Hon. Colonial Secretary

1. Mesere, Wilkinson & Grist have written to you to-day with reference to the British Ships (Transfer Restriction) Act, 1916, asking that the point raised should be referred to the Board of irade. I think that a despatch should be sent as soon as possible. The point is of some urgency in Wilkinson & Grist's present case, and it may arise at any moment in other cases. It nearly arose in a case a few months ago, and it may well be that some declarations have been made, without due consideration,

really are inaccurate.

£. The Act in question itself impléedly contemplates transfers and mortgages to companies with non-British shareholdera, provided that such non-British shareholders have not a majority of the voting power. The form of declaration contains a statement that "no person or body of persons not qualified to own a British ship has any interest whatever in the (mortgage)". If there be one non-British shareholder in the company it is impossible to make this declaration according to the obvious and literal meaning of these words.

8. It might be that the meaning intended is that no person or body of persons (other than persons who are shareholders in the said company) not qualified to own a British ship has any interest whatever in the mortgage. I have suggested to Wilkinson and Grist and to the Registrar of British ships that a declaration in this form might be accepted at the "isk of the company pending reference to the Board of Trade.

" Trajetoed Iafaoi »0 »

.gofynod

(sd.) J. H. Kemp,

Attorney General.

b.2.17.