Mr Dugald Thomson⁽¹⁾ has written to the Prime Minister forwarding a statement from Bowden Bros & Company Limited in relation to a case between that company and the Imperial Marine Insurance Co. of Tokio, Japan.

It appears that Bowden Bros & Company effected a contract of marine insurance with the Imperial Marine Insurance Co. and that after a loss had occurred the latter company repudiated their liability under the contract and that Bowden Bros & Company took proceedings for redress in the Supreme Court of New South Wales and recovered a judgment against the Japanese company for a considerable amount and that judgment has not proved effective because the Japanese company had before the judgment was obtained closed up its business and removed its assets from Australia and that the Japanese law afforded no method of enforcing the judgment in Japan.

The statement was forwarded in the hope that representations might be made to the Japanese Government through the Imperial Government in order to bring about the redress that Bowden Bros & Company are entitled to.

The Prime Minister has forwarded the papers to me for advice with respect to-

1. a bill requiring foreign insurance companies to possess security in Australia,
2. the materials necessary to transmit to the Imperial Government with a despatch urging official representation to the Japanese Government.

With regard to question (1), I am of opinion that the Commonwealth Parliament has power under the Constitution to pass legislation requiring any foreign insurance company to possess security in Australia before it commences to carry on business. A Royal Commission has the subject of insurance under consideration and in my opinion it would be advisable to await the Commission's report before framing any bill to deal with the matter.

With regard to question (2), I am of opinion that the material necessary to transmit to the Imperial Government with a despatch urging official representation to the Japanese Government is a complete statement of the case of Bowden Bros & Company vouched by authenticated copies of the proceedings in the Supreme Court of New South Wales including the judgment and evidence to show that the Japanese company has closed up its Australian business and removed its assets and that under the law of Japan no redress is open to Bowden Bros & Company through the courts of that Empire.

[Vol. 7, p. 243]

(1)Member of the House of Representative.