In answer to the inquiries contained in Mr Winterbotham's letter of 12 August 1914, it is not possible to give a general answer which will cover the various forms which these cases may assume.⁽¹⁾ But with this limitation the following statement may be made:

All trading with the enemy is forbidden under penalty of forfeiture of the goods therein engaged. Such trading takes place when goods are ordered from Germany after the outbreak of hostilities, or when, if ordered before, the British trader has not taken such measures as he could to stop the shipment on the outbreak of hostilities.

If the goods were shipped before the outbreak of hostilities, or were ordered before, and the order could not after hostilities be countermanded so as to prevent shipment, there is no trading with the enemy. In the cases set out in the questions submitted, it is assumed that there has been no trading with the enemy in this sense.

Cases (1) & (2)-In these cases, the ship will go into the Prize Court, and the consignee will be able to make a claim for the goods as his property. If he succeeds the goods will be released to him on payment of freight.

Cases (3) & (4)-In these cases, the normal course in time of peace applies: the goods will be delivered to the person who presents the proper documents.

Cases (5) & (6)-In these cases the vessel will go into the Prize Court and the consignee will make his claim for the goods as his property. If he succeeds the goods will be released to him.

Difficulties may arise where the property and control of the goods is retained (as would be likely in cases (1) and (5)) by the German consignor or his agents until payment by the consignee. In such cases the Court will have to determine whether the goods are to be treated as enemy goods liable to detention during the war under the Hague Convention, or whether the consignee is to be allowed to complete his title by taking up bills drawn on him or otherwise making payment.

Case (7)-The consignee must present his claim in the Prize Court.

If the goods are the property of the consignee or of a foreign non-German owner, there will be no difficulty about releasing them. If on the other hand they are the property of the German house, they are prima facie liable to detention, and similar questions will arise as set out in the last preceding paragraph.

Case (8)-The consignee must present his claim in the Prize Court, but no difficulty is likely to present itself as the property in the goods will almost certainly be in him or the British house.

Case (9)-Here the goods will be delivered in the ordinary course to the person presenting the shipping documents.

[Vol.13,p.33]

(1) The cases were sent out in a resolution carried by the South Australian Chamber of Manufactures,the terms of which were conveyed to the Prime Minister in the letter referred to. After calling attention to 'the uncertainty at present existing in the commercial community as to the postion of merchants in up regred to goods of German bottoms now in transit to Australia or at pressent held up in Australasian ports' the resolution requested the Prime Minister to supply answer to questions what will be the position of the consignee on the safe arrival of a ship in port in regard to---

1. German goods purchased through a German house and shipped in a German bottom.

2. German goods purchased through a British house in a German bottom.

3. German goods purchased through a British house in a British bottom.

4. German goods purchased through a British house in a British bottom.

5. German goods purchased through a British house in a German bottom.

6. German goods purchased through a British house in a German bottom.

7. Foregin (other than enemy's goods through a German house in a German bottom).

8. Foregin (other than enemy's goods through a British house in a German bottom).

9. Foregin (other than enemy's goods through a German house in a British bottom).