In answer to the inquiry of Alfred Lawrence & Co., dated 15 October 1914, there is a provision in the Trading with the Enemy Proclamation against payments to an 'enemy' who is defined as meaning any person resident or carrying on business in the enemy's country. On the other hand the Proclamation legalises transactions with branches of an enemy's business in British territory.

The German principal referred to in this case though not at present in Australia is not stated to be resident in Germany. Even if he were, and were carrying on business there, it would not be unlawful to pay money to an Australian branch. A fortiori it would appear that where the main business itself is carried on in Australia, debts incurred to that business may be lawfully paid to it. The obligation will be upon the managers of that business to see that the money is not transmitted to Germany.

In the circumstances, Messrs Lawrence may of course also pay the money due to the Spanish principals of the house referred to.⁽¹⁾

[Vol.13, p. 159]

(1) In forwarding this opinion Mr Garran , Secretary's , Attorney-General's Department, stated "I concur" with it.

(2)See Preface