ENEMY TRADE

Dominion, Volume 10, Issue 2908, 21 October 1916, Page 7

ENEMY TRADE

WORK OF DESTROYING IT

A CLOSE-MESHED NET

WORLD-WIDE PRECAUTIONS

STATEMENT BY HON. A. L HERBMAN

Tho measures adopted by the Imperial and Allied Government to stifle trading with the enemy are so complicated'thai) tho general public can have but little conception of what actually has been done in the matter. Tho issue now' and aagin of proclamations or notices in the Government Gazette (which are only briefly summarised in the daily Press) ..prohibiting trading with this or that firm, tho imposing of restrictions on importations and exportations overseas of various articles do not afford tho public much enlightenment, but aro rather bewildering to the averago reader. With tho object : of "obtaining an account of tho restrje- j tions \ip to date imposed on enemy trade, and their effect, a Dominion re- ' porter prevailed on the Attorney-Gen-eral to make a statement on tho subject yesterday, and Mr. Herdman's remarks, which follow, on this important question will bo found to be as interesting as they are instructive. "The attention of the people," said Mr. Hordman, "has been so concentrated upon the actual fighting operations of opposing armies and battle-Hoots that fewhavn troubled to understand the magnitude of tho task which faced tho Allies when thev set out to suppress trading with the enemy, and to render abortive the efforts of Germany and Austria, to trade outside of their respectivo (territories. I shall endeavour 10 explain as simply as possible tho various steps taken by the Allies, which have resulted in giving them in a time of war almost the complete control of the greater part of the trade of the world.

Trade Eotwocn the Belligerents. "It will bo understood that immediately war broke out all legitimate, trade between the contending belligerent nations came to an end abruptly. That the trade of Great Britain, France, and' Russia with Germany and Austria in the" years preceding the war was considerable, can bo gathered from the following . figures, which, have been supplied tomej--

enemy distination were suspected the ships were taken into British ports, where the cargoes could bo submitted to a careful and thorough investigation. If goods were discovered which wore intended to reach the enemy, they were seized and detained! or placed in a Prize Court. The work of maintaining tho blockade of enemy territory is entrusted to the Navv, and to ■ a number of experts in England, comprising what is known as the Contraband Committee, who sit afc the Foreign Office, and who in the performance of their work keep - in close touch with the Admiralty, tho ! Board of Trade, and the War Trade Department. The-ie is abundant evidence to prove that tho vigilance and patience of the Navy, combined with the parching inquiries conducted by the Contraband Committee, has done much to destroy trade between persons residing in enemy territory and persons carrying on business in other parts of the world.

Isolating the Enemy. "But the Navy and the Contraband Committee are not by any means the only weapons oniployed by the Allies in their warfare against German trade. I shall mention briefly other stops taken to isolate the enemy countries and nut off their supplies:— "1. Arrangements have been made with combinations of reputable merchants in neutral countries that goods consigned to them will not find their way to tho enemy. Instances.of agreements- of this kind are those made with the Netherlands Oversea Trust in Holland, the Sociote Suisse do Surveillance Economique, in Switzerland, the Merchants' Guild of Copenhagen, and the Chamber .of Manufacturers in Denmark. -, . . "I -am informed that to obtain rubber in the United States manufacturers have been obliged' to form a special organisation which guarantees that neither the raw material nor the manufactured article shall reach German or pro-German hands. • "It may bo interesting to the public of New Zealand to learn that wool cannot pass British or Trench Customs boundaries for America unless consigned to tho Textile Alliance (Incorporat-ed)-of Now York, with the approval of the British Ambassador at Washington. Trade agreements of the character described above have been entered into with mercantile combinations in Sweden, Norway j Denmark,' Holland, Switzerland, and the United States. . "In some cases these agreements are encouragdd by the neutral Governments, For in/stance, in Denmark and Holland legislation has been passed which ronders persons who contravene these agreements liable to sevcro penalties, and I have been informd that in Holland a person who contra-

Figuics showing "the total import and export trade of (1). Germany, and (2) Austria-Hungary with the undermentioned countries in the year preceding the outbreak of war. ■ . TT Germany. Austria-Hungary. i ' CH ; OK •§>"? «£*£ ■ si b\ *H ?$$ Countries. V S | |ff §£ .' S£ 1 fa V E ~£ £ £ U Sn£s™79l3 : 81,053,000 72,147,000 .7,764,000 5,606,000 B fcarjn n d d edM'ch.3l ) l9l4 , 8,451,000' 17,612,000 2,900,000 v 6,673,000 Calender" year 1913 ...... 4,956,000 6,873,000 70,000- 615,000 British South Africa— ' ' _ n '' ' ? Calendar year 1913 ....... 3,546,000. 2,191,000 103,000 8,000 y c l ar a c^dedM , ch.3l,l9i4 ,3,018,000 911,000 367,000 77,000 C °cSndar year ISTd 401,000 1,517,000 62,000 ' 99,000 CaTenaar year 1913 687,000 337,000 18,000 2,000 Straits Settlements— • „„„ „„„ rn „ „„. . Calendar-year 1913 877,000 2,100,000 287,000 520,000 Totals 102,989,000 103,688,000 • 11,621,000 13,800,000 -Calendar year 1913 42,307,000: 34,307,000 '4,093,000 -1,734,000 Calendar year 1913 '.. 68,561,000 48,274,000 3,699,000 6,965,000 Totals 213,857,000 186,269,000 19,413,000 .22,499,000

"When it is understood that the oversea export trade of tho Central Powers has practically ceased, and that their import trado lias been substantially restricted, tho figures shown above wiil servo to indicate the grave economic disadvantage under which they are labouring to-day. • "We bought from Germany and Austria : Paper, stationery, jewellery, leath-er-manufactures, glassware, ' bottles, electrical ware, toys arid games, earthenware, electrical machinery, and other articles of commerce, and in return we supplied commodities in large quantities. Upon the commencement of hostilities we ! ceased'to buy and sell. Tho doors of Great Britain were barred against British goods going out of an enemy country, and they were shut in •the face of the person who attempted to land enemy property within British territory. Proclamations were issued by the King defining the offence of trading with the enemy, and persons who attempted to contravene the law were made liable to severe penalties.

venes tho guarantee of tho Netherlands' .Oversea Trust is treated 'as a smuggler. "2. Shipping firms trading between Dutch and Scandinavian ports, in return for a promise that they will bo subjected by tho British authorities to as little dolay as possible, have engaged not to carry goods destined for the enemy.

"3. Bunker coal is refused by the British authorities to ships which will not enter into undertakings not to carry enemy goods. "4. Special agreements have been made with neutrals in respect of goods over wiiich tho British Government exercises control. The object of theso agreements is to ensure that these special articles will not reach the enemy. Articles such as rubber, copper, wool, hides, etc., are affected by these agreements. "5. A system of what is known as 'rationing' has been adopted. The object of the system is to prevent quantities of a given article Teaching' a neutral country which are larger than, that country's ordinary domestio requirements. "For fuller information upon these methods of dealing with German supplies, I recommend anyone interested to read the White Paper issued by the Imperial Government on January 5, 1916, which minutely describes the blockade policy of the 'Allies.

Trade Between Belligerents and Neutrals.

"Trade relations between neutral countries such as tho United States, Norway, Sweden, Denmark, Holland, and Switzerland, and the belligerent countries, differed, of course, widely from tho relations which a state of war created between the contending be!liegrents themselves. Neutrals were free to trade with belligerents themselves. Neutrals were free to trade with-belligerents so long as.their operations were hot unneutral. According to tho principles of International Law they were at liberty to trado with Great Britain and her Allies, and with the • enemies of the Entente, provided they did not supply to either belligerent contraband of war or goods which were classed as conditional contraband. ln-'the initial stages of tho war, when our power to strike a blow at the enemy on the sea was restricted to capturing enemy ships, enemy goods on enemy ships, and to seia'rag contraband articles (such, for example,-as guns, ammunition, material for making ammuni- 1 tion, goods which might be used for v/ar- purposes, etc.) found on neutral ships and proved to be going to the enemy country or proved to be destined for an onemy'Government or its armed Forces. For instance: At tho commencement of tho war an American ship carrying contraband articles from Now York to Hamburg could be stopped on tho iHgh Seas and tho contraband cargo could bo seized and placed in a British Prize Court. When war brake out tho Allies were prepared, hi carrying out their operations on sea and against enemy commerce, to observe well recognised'rules which in the past had been respected by nations at war with one another, and it was not until Germany threw principle overboard and embarked upon a policy which involved the wanton destruction of defenceless merchant vessels and the death without warning of civilian crews and ships' passengers that they resolved -to tako nioro stringent stops in the direction of stopping all trado to and from Germany.

Complete Lockingwp Impossible. "It is admitted that the various methods of locking-up Germany from the outside world are not completely effective. They cannot be, so long as her territory is bounded by Holland, Denmark', and the Baltic. But wo know that her export trade has been wrecke'a. We know that certain articles that are almost vital to her existence can only be obtained with the greatest difficulty, and wo know that Uto system of blockado invented hy the Imperial authorities, has become a force of great power, that it is growing in strength, and that it is helping in no small way to choke the life out I of the German nation.

Blockade. "Accordingly, in March, 1915, tho 'Allies decreed that no goods, whether contraband or not, or whother consigned, from or to neutral ports or not, should bo allowed to enter or leave, directly or indirectly, enemy territory. A species of blockado of the, territory of the Central Powers wa6 established. Neutral vessels carrying goods to neutral ports or to enomy ports in the [ North Sea were stopped, their cargoes we're carefully examined, and if ' an

Precautions in New Zealand. "I have dealt so far only with the main steps wriich havo been taken to isolate Germany commercially, but no statement of this kind would bo complete without some reference being mauo. to other methods adopted for tho purpose of exterminating tho German trader. There is probably no uniformity of practico in the various parts of the British Empire. Tho laws and regulations made in New Zealand are not identical with the laws and regulations made in England, nor are they entirely upon all fours with the law of the Commonwealth of Australia. But the fundamental principles aro the same, and if I state what has been dpne in New Zealand, pcoplo will have no difficulty in understanding tho gen--oral policy pursued throughout tho Empire. 1. It is an ofl'enco to trado with any person or body of persons resident or carrying on business in enemy territory. 2. Trading with any company or firm carrying on business elsewhere than in the British Dominions is prohibited if that company or firm has its chief place of business in enemy territory. s 3. No person can import goods from any country other than the United Kingdom or British possessions or territory in tho military occupation of the British Government, or from France, _ or the United States, or Japan, with-

out a license from the Comptroller of Customs. 4. If any person, firm or company is carrying on business in New Zealand for the benefit of alien enemies resident out of New

Zealand, that firm, person or company may he declared an enemy with whom no person shall trade except under a- license issued by tho Attorney-General. . ' 5. Everyone carrying on business in New Zealand and having any foreign correspondent outside the British Dominions must make a return giving particulars of tho business of that correspondent.

6. The Customs authorities are empowered by regulations to stop the export of goods to any place outside of British Dominions, if

they have reason to suspect that the' consignee is an enemy or that the goods may ultimately find

their way to enemy territory. 7. No goods can be shipped from New Zealand to any placo other than British territory until a statutory declaration of ultimate destination has been made by the

shipper. 8. Under an Order-in-Council

made on September 26 last the

importation of all goods of enemy manufacture or origin is prohibited. AVhether such goods come from tho United Kingdom or from 'Bri-

tish possessions matters not. 9. What are known as certifi-

cates of origin and interest, i.e.,

documonts certifying to the origin of and the persons interested in the goods, signed by a British Consular officer in the country from

which the goods are exported are required in the case of goods imported into New Zealand from

Norway, Sweden, Denmark, Holland, and Switzerland.

10. Certificates of interest are required in the- case of all goods imported from all foreign countries except those mentioned above, and France, Italy, Russia, Rumania, Japan, Portugal, China, Siam, Hayti the United States of Ame-

Rica, and the French possessions in the South Pacific.

11. Special powers are given to the Collector of Customs to detain uncertified goods or goods which he suspects are prohibited goods. _ 12. It is an offence to communicate through the medium of the post office or otherwise with any person carrying on business in enemy territory. 13. The Postmaster-General is authorised to prevent the delivery of postal packets to suspected persons. 14._ Tho Attorney-General may prohibit the use of the name of an enemy in connection with any business carried on in New Zealand. 15. No company can bo incorporated in New Zealand if an enemy, or alien enemy who is-not a British subject, or an enemy company has any interest in it. 16. No - company incorporated outside of New Zealand can carry on business in New Zealand until tho Attorney-General is satisfied! that no enemy, enemy company, or alien enemy who is not a British subject, possesses a substantial Interest therein. 17. An alien enemy who is not a British subject.is prohibited from carrying on business in New Zealand unless resident therein. 18. No enemy-or alien enemy who is not a- British subject can acquire any shares, debentures, or debenture stocks in any company incorporated in New Zealand, and no alien enemy who is not a Brit•isli subject is allowed to engage in

foreign trade. 19. Tho Public Trustee has been declared tho custodian of enemy property, and all moneys payable to an enemy or to any person on his behalf by any person in Now Zealand must he paid to him. 20. No.person.is allowed .without the consent of tho AttorneyGeneral to be concerned in the transfer of enemy property or in the acquisition of an enemy busi- ' ncss, or to carry on business as the successor of'an enemy.

21. Tho Attorney-General may declare that any. share, in a New "ealand company which belongs to an enemy or onemy company shall be vested in the Public Trustee.

' 22. If satisfied that an enemy or enemy company or alien enemy who is not a British subject possesses a substantial interest in any New Zealand company, the Attor-ney-General may declare such company to he an enemv. 23. The Public Trustee has full power to take possession and sell enemy goods, and to liquidate an enemy business of which he has been appointed controller, and he is authorised to sell enemy shares

which have been vested in him. , "These aro some of the principal rules which enable the Government to deal with* enemy trade and enemy property. Under these regulations per-: sons have been declared enemies. Enemy property has been seized. Enemy businesses have been vested in

the Public Trustee, and are now in the process of liquidation. Shares belonging to enemies have been vested in tho Public Trustee, and watchful Customs officials are constantly searching for any evidence of enemy trading and for proof of any attempt on the part of New Zealand traders to do business with any person, firm, or company connected or associated with tho enemy. "In connection with the registration of companies, soliciors rquired to furnish statutory declarations that no enemy, alien enerAy, or enemy company is directly or indirectly interested in the undertaking for which registration is asked, and in some cases registration has been refused.

The "Black List." "I have not so far alluded to the 'Black List.' This is one of the most effective means of exterminating German trade. Already tho' names of over 2000 persons, firms, arid companies carrying on business in Europe, Asia, Africa., and America have been gazetted as enemies in New Zealand, and all known enemy firms who were in business in New Zealand' have been 'blacklisted; It is an offence to trado with any blacklisted person, firm, or company, and it is of course an offence to trade with anyone living in enemy territory. . The Allies have been busy searching the world for enemy traders, and they are gradually squeezing out of business every person, firm or company associated with tho enemy. 'lam not aware that the black list principle has ever been used in a war before, It has arisen apparently, out of tho circumstances and conditions of the present war, aud in making such a law tho Allied Governments aro merely affirming the principle that during a tinie of war they have a- right to determine the person's with whom their subjects may or may not trade.

■ A Remarkable Achievement. "I. helievo that when the full extent of tho -world-wide organisation built up by the Allies' in a period extending a li'ttlo over two years comes to be properly understood it will be regarded as ono of tho most remarkable economic achievements that tho world has ever witnessed, and some day in the future jt will bo seen that tho commercial warfare so ingeniously directed by civilians in circumstances which were difficult and delicate materially assisted to gain tho final victory over our foes which tho soldiors of tho Allied armies aro some day certain to win on tho field of battle."