CAB38-23 — Page 45

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the reason for the insertion of an article in the list in such a proclamation is that the naval or military forces would in time of war require the entire stock in this country for Government use: e.g., coal sacks and motor lorries appear in the list.

If any person attempts to export in violation of the proclamation, the goods are forfeited; but, unless he attempts to export them, the goods remain in his own possession, and can only pass into Government hands by their purchase from him.

5. Under the " 'Exportation of Arms Act, 1900," power is given to prohibit the export of arins and certain other classes of goods to certain places to be specified in the proclamation. The ground for the insertion of an article in a proclamation under this Act is that such article would be useful to the enemy if it came into his possession: i.c., the object is not to secure the goods for the use of the British forces, but to prevent them from reaching the enemy.

6. In the Customs Instructions and in some of the papers in the "Trading with the Enemy" Report goods specified in a proclamation under the Act of 1879 are called prohibited goods," and articles specified in a proclamation under the Act of 1900 are called "restricted goods."

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7. The question came before the Committee of Imperial Defence with reference to goods in the above categories which are included in the cargo of a neutral vessel touching at a port in this country, either at the time of the outbreak of war or after the cutbreak of war, the vessel having shipped the goods at a foreign port and intending to carry them to another foreign port. The articles affected by the conclusion arrived at at the 119th Meeting do not therefore come within the British jurisdiction at all until after they have been shipped on board the vessel for export to a foreign country. The power of the Customs to interfere with the goods is only given by a proclamation which renders such articles liable to forfeiture when shipped for export. The result is that goods lawfully shipped by a foreigner in a foreign country on board a foreign steamer bound for a foreign destination would be forfeited merely because the steamer calls at a British port. No penalty other than forfeiture is provided in either of the above two enactments. It is true that under the Act of 1876 the Customs have power to require particulars from the master of any such cargo, and also, if necessary, to open and examine packages, but as these goods are not goods of which the import is prohibited the commissioners would have no power under that Act to penálise their export.

8. Prohibited goods imported in neutral bottoms in this way stand in quite a different position to prohibited goods belonging to a man in this country, as the latter is left in quiet possession of his property until the Government take them over from him by purchase, or until he attempts to break the law. The foreigner, who has done nothing intentionally to violate the law of the country, is to be treated as a wrong doer and have his goods forfeited.

9. The action taken with respect to such goods on board a neutral vessel should not in any case exceed the action taken in respect to similar goods belonging to a man in this country. If removed from a neutral ship at all, they should be taken by way of requisition on payment of compensation.

10. Even the expediency of requisition is open to doubt. Section 3 of the Minutes of the same meeting deals with the requisitioning of enemy cargoes of foodstuffs in neutral bottoms in British ports. The Committee of Imperial Defence decided against any such action on the ground that the gain to Great Britain, if any, would be slight, while great provocation would be given to neutrals, and also because such action would inspire neutrals with uncertainty, and would tend to deter neutral ships from visiting British ports.

All these arguments apply equally to the requisitioning of prohibited goods on board a steamer which happens to call at a British port. It would provoke bitter resentment, and except where goods were contraband would violate the Declaration of Paris.

11. The question was raised before the Defence Committee merely from the point of view of the Customs, and no attention was drawn to the above considerations, and it seems safer to limit the conclusion in Section 4 to contraband, and to exclude from its operation prohibited goods on board neutral vessels touching at British ports.

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