ENEMY TRADING

Dominion, Volume 9, Issue 2762, 4 May 1916, Page 6

ENEMY TRADING

THE LATEST REGULATIONS

THEIR MEANING EXPLAINED

in tL n -Regulations published n 1m Dominion yesterday are drastic in thou application to those persons in Now Zealand engaged m foreign trcde who are enemy subjects.' Under tlio legulatlons tho operations of a German or other enemy subject living in this country should come suddenly to a closo as far as import and export trade Certain of tlio provisions or tho icgulations have an equally drastic effect upon alien enemies in New Zealand who are not British born havkterost in companies whose businesses are m this country In cases which tho regulations affect, tho lubhc Trustee, who is tho custodian or enemy property, takes charge of anv income or proceeds in respect of shares held in New Zealand companies bv alien enemies.

Tho Attorney-General, tlio Hon -V L Herdman asked yesterday to' expiain toi tne benefit of tho public the principal provisions of tho regulations, made 'he ( following statement: — "Tho War Regulations just gazetted should bo carefully studied by the trading community The information which havo been able to glean from various sources leads me to believe that the amount of trading with the enemy that lias been practised since tho outbreak ot war hy persons residing in Now Zealand has been negligible. Still there havo been instances, and tho Government is determined to use every means in its power to defeat the ingenuity of tho persons who attempt to engage in illicit trade. Henco tlio new War Regulations. They arm tho State with great power; but if the State is 'to pertonn its work efficiently and successi ? i these days of ■unprecedented difficulty, it must be placed in a position in. which it can hit hard, hit quickly, and hit without being hindered by any embarrassing and complicated system of procedure.

imports ant} Exports. '■The general effect of tlio leading features of the regulations can bo indicateel in a- few words. "First: Regulations (1) and (2) prevent alien enemies resident in New Zealand, other than those who are British subjects, from engaging in foreign trade. A German who lives iu New Zealand is iipw by virtue of the regulations shut out from the import and export trade of this country. Any right to carry on business which lie possesses is limited to business which is purely local in character. Perhaps a typical case.will best servo to make the general meaning and ettect of the regulations clear:—lt may be part of the business of a subject of Germany residing in Now Zealand to import goods from Groat Britain or from America or irom any oversea country, or ho may be exporting goods to places'beyond .New Zealand, Regulations (1) and (-) put a stop to that business, 'i'lie regulations apply to subjects of an enemy country, but the Altorno'y-Gen-eral may mako them apply to persons wlio liavo' been subjects .of an enemy country, but. who have bccome naturalised British subjects. Perhaps I should mention that goods which have already lett the country of exportation before tho coming into operation of tho regulations may bo imported, unless, of course, they are liable to be stopped for any other reason.

Shares In Companies snd Firms. "Second: Regulations (3) to (9), inclusive, relate to enemy shares and enemy shareholders. When tho Attor-ney-General is satisfied that a share in a New Zealand company belongs to an enemy or to an enemy company, or to an alien enemy other than a naturaluoru British subject, lao may mako an order and declaro that such share shall be vested in the Public Trustee. Tho ettect ofiyt-he publication of tho notice Ox such order , and-doslaration-in tile Gazette is to 1 vest tho share, in the Publie Trustee, whose duty it then becomes to. sell tho share and dispose of tho proceeds of the sale iu accordance with the trust affecting tho-same; but no money is to bo paid to an- enemy. It is hoped tlijit tho ultimate eflect of this.regulation will be tho elimination of enemy subjects from ]\ t gw Zealand companies. ' 'Third: Regulation (10) giver the At-toruey-General power, when he is satistied with respect to any company iiicorporated in-Now Zealand that an enemy or an enemy company or any alien enemy (other -than one who is also a natural-born British subject) possesses or exercises a substantial interest in or control over that company,,to declare the company an enemy. Tho general effect of such a declaration will bo to make trading with suc'n a company unlawful. "l'ourth: Regulation (II) requires persons, firms, or companies eaixying on business in New Zealand with correspondents or agents beyond New Zealand, elsewhere than in the United Kingdom or a British possession or British protectorate or territory in the military occupation of the King, to'furnish tho Government, with the name and place of business of such correspondent or agent.

Government Wants Help. "To check enemy trading the Government wants more complete information about persons, firms, and companies beyond tho shores of New Zealand, .with whom .business pcoplo m New Zealand carry on trade. If the Government possesses a complete list of foreign persons or firms residing elsswliere than in British territory, who do business with merchants and others iir New Zealand, the Government will he in possession of valuable information about New Zealand trade, and will be able to investigate Auspicious cases of trading, expeditiously and satisfactorily. Tile information which' traders are required to supply to the Government will be treated as confidential, save that wo reservo tho right to use it., if necessary, in court' proceedings. Some of tho regulations which have been recently made and somo of those under review resemble somo of tho legislation which has come to hand from Great Britain.'

"The attack upon Gorman trade by British countries appears to be conducted upon principles which aro much alike, and it is, I believe, being made successfully; at any rate, it. is certainly being carried 011 more vigorously than it was twelve months ago, and it seems to be achieving two main objects: It is steadily wrecking the remnant of German oversea trade that is left, and it is gradually making it a matter of great difficulty for Germans to re-establish German businesses' in British countries after the war is over."