CO129-453 - Acting Governor Claud Severn - 1919 [1-3] — Page 299

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2.

to the Colony will not be counterbalanced by any wider gain.

Further should the restrictions be continued after Germany

is again free to trade in the Far East these British

restraints can hardly fail to be of the greatest assistance

to German merchants and German shipping in winning back the

ground lost in China during the War.

It is not possible in this matter to make a distinction in

favour of the former between transhipment cargo pure and

simple (i.e. cargo in which the only local interest is that

of the warehouseman and shipping agent) and cargo which is

re-exported after being handled in the Colony by merchants

proper. The whole trade of the Colony is transhipment and

it is unjust that the portion of her trade in which she has

the lesser interest should be favoured with the greater

freedom.

Nor can a distinction be drawn between wholesale and retail

consignments allowing the latter to move to destinations

prohibited for the former. Such a distinction, while it

might mitigate the inconvenience of "B" Classification to

minor export trades (e.g. linseed oil), would not help in the

case of the rice trade which re-exports some 800,000, tons a

year to non-British destinations.

The effect of these instructions on particular classes of

goods is further discussed below.

The exact intention of the sentence "Existing

instructions as to issue of licences in respect of any of

above commodities hold good still" is not altogether clear. In respect of the goods which are to be placed in Class B.

it clearly means that existing dispensations permitting exportation of these goods to foreign destinations hold

good e.g. vegetable oil of foreign origin may still be exported to satisfactory consignees in Asia and America as

But what authorised by the telegram of 11th. July, 1917.

is the effect in the case of goods now to be placed in Class

3

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