NEUTRALS & CONTRABAND.

Dominion, Volume 8, Issue 2448, 29 April 1915, Page 9

NEUTRALS & CONTRABAND.

HOLLAND'S SCHEME

A verv ingenious method adopted by Holland to solve the contraband problem is described by the Hague correspondent ol' the "Manchester Guardian." Soon after tho war broke out, he says, the commercial men and shipowners of the Netherlands, who were carrying on thoir business in a perfectly honourable way, realised that thoy were suffering, and were likely to suffer more, from the conduct of certain other firms in this country. For instance, business bouses of a certain nationality set up in Holland and started operations in the guiso of Dutch firms, which inevitably meant that in the eyes of belligerents all Dutch imports became suspect, so that the shipping and industries of Holland, the latter absolutely dependent on foreign supplies, suffered vory seriously. To meet this difficulty leading Dutch shipowners and merchants took tlio step, some months ago, of forming a Trade Commission, whoso duty it wa-s to give advice to all genuine traders, and to put moral. pressure on traders where needed. At tho same time the Government started to ensure the country's food supplies by themseluves purchasing wheat, rye, maize, and other cereals in the American markets, and having the cargoes consigned directly to themselves, thus providing a guarantee to Britain and France that the supplies were for purely home consumption. Tho Government even for a time allowed certain other goods to be consigned to them under similar guarantee. But it is quite impracticable for a Government to undertake what private individuals may well do. A Government, for instance, cannot pick and choose between its subjects, accept the good faith of this firm and refuse to relv on another's word. It was realised. thoioforo, that something more must be done. The Trade Commission already referred to approached all tho leading shipowners and banks in the country, and proposed co-operation in a trust that should act as intermediary between them and the belligerent Governments in regard to all contraband and conditional contraband goods. The trust should import these on behalf of anv or all Dutch firms, and at the same time give a guarantee to the Government concerned that such goods ivcre for Dutch consumption only. Tho proposal met with ' a good reception, and the working capital of the trust was put up in equal proportion by all the big shipping companies, banks, etc. Hie understanding was that any balance left after paying 4 per cent, interest, should he finally handed to the National Relief Fund. And the Governments of the Allies undertook that contraband and conditional contraband goods consigned to the trust should not bo held up.

The "N.0.T." _ This was quickly followed by a public invitation to all Dutch firms to avail themselves of the services of the trust for the import of such goods when intended solely.for use within tho Netliivlands, for the re-export of any such to other neutral countries, and, further, for the import from belligerent countries of goods whose exportation had been forbidden by their respective Governments, on condition that these would not be passed on to such countries' opponents. The result was that ill about 24 hours some 200 firms applied to the trust for its services.

But the important point to notice Is the way thiV body works. Every firm, even those who actually participated in forming it, must duly make application to the trust, If such a house is known to be reliable—and the Administrative Council of the trust are men of the most irreproachable • standing, and in a position to judge the character of every such concern—then it iB required to sign _ a definite contract, with a big financial penalty, or, where thought advisable, bank guarantee attached thereto, binding itself that goods so imported shall only be used in the country and not be reconveyed to any belligerent. Any questionable firm will be refused the trust's mediation, and if the executive learn through their agents of any failure to observe the terms of the contract the penalty will,_ of course, be forfeited and further services likewise refused.

As regards the penalty, ever? shipowner who trades under the auspcies of tli? N.O.T. (Netherlands Oversea Trust) stakes somewhere about £10,000, as well as the good faith that stands so high in Holland, for the fact that ho is carrying no other contraband in the ships in question than that addressed to the N.O.T. Every such N.O.T. vessel will he provided with a special ensign. When, say, a British naval officer boards her he will be shown tho N.O.T. signed documents covering the entire cargo, and this the Allied Governments h&ve undertaken shall be sufficient. Tho officer will upon that Kiveai a written acknowledgment of his visit, upon which the ensign will be flown in reversed fashion to signify such fact. Thus, i without any further search, and allowed to pass by any other warships met with, the vessel will proceed direct to tho Downs (through Which all shipping is bound to pass owing to the minefield), where the British authorities will again formally board the ship to confirm the fact that the examination of the papers has taken place, and then, without holding up, the N.O.T. vessel will come straight on to a Dutch port. If any of suoh goods are later re-exported to other neutral countries, it will be done by the N.O.T. under like guarantees. Should it be clear to the executive that bigger stores of certain articles are being imported than the country requires, then the.import will be at once stopped. The significance of this arrangement lies in the fact that it is applicable in every one of the_ other neutral conntries concerned—in America (when it would concern exports),_ in Italy, and in Scandinavian countries. The system applies equally all round. There is no sort of idea of showing favour to one side or the other. On the one hand, Holland hopes to get her rubber and all the various supplies declared contraband which she needs from across the seas for her home use and for her commerce with other neutral countries. On tho other hand, the trust is confident of being able to make a similar arrangement with tlho Central European Powers for the supply to Holjand of various products, such as aniline dyes, etc., and the N.O.T. will strictly see to it tliat, badly as, for example, such dyes are at present wanted in England. good faith is kept with Germany, and none of these are allowed to go through to Germany's enemies.