This is a case of a shipment by a neutral ship from the German port of Jaluit in the Marshall Islands, to Sydney. The vessel left Jaluit on 27 September 1914; two days afterwards, Jaluit was occupied by our ally, Japan.

Trade between a German port and Sydney became unlawful on the outbreak of war, and not the less because carriage was by a neutral vessel. The Declaration of Paris 1856 which establishes the rule of free ships free goods cannot be construed as a general licence to trade between the belligerent countries so long as the traffic is carried on in neutral vessels. The importation of the cargo into Sydney would be an offence against the Trading with the Enemy Proclamation, Art.5(7).

The goods are declared by Justus Scharff to be the property of the Hamburg Jaluit Gesellschaft: they are, therefore, enemy property and liable to condemnation. Further, Scharff is bound, under the Proclamation against trading with the enemy, not to enter into any contract or obligation for the benefit of an enemy (Art.5(9)) and his proposed renewal of the Remonstrant's charter so as to carry the cargo on to England would be an infringement of that provision.

[Vol. 13, p. 120]

1. This date is attributed.The opinion is undated in Opinion Book,but appers among aother opinions dated November 1914 and is alluded by Mr Garran,Secretry,Attorney-General's Department,in forwarding a further opinion ,dated 3 December 1914 (Opinion No,583), by Professor Harrison Moore on the case of the Remonstant.
2. See Preface.