CO129-443 - Governor Sir May - 1917 [7-9] — Page 142

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Ltd. ie 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, 18 some- what different from the case of a new issue by a company which is not being wound up and reconstructed, but the decision appears to indicate a policy with which the position taken up in the proposed reply of the Custodien would be at variance.

The reasons which underlay the pceition taken

8.

up in the letters of the Attorney General and the Custodian of Enemy Property were the ur certainty as to the actual legal position, the doubt as to the policy of dealing adversely with private rights of property, and the consideration of the possibility of retaliatory measures being taken by the enemy. The consideration of the matter on these lines seemed the more desirable because it did not appear that any question of assistance to the enemy during the war was involved. As of course 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 renec why the severer policy which is apparently favoured by Sir Everard Fraser should not be adopted if it does not conflict with wider principles and interests.

I have ão*,

(sd.) F. H. Lay,

Governor, &0..

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KIETIJACH 1791я

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