Mr. A. T. DAVIESasked the Undersecretary of State for Foreign Affaire whether he is aware that the Foreign Office has declined to protect or assist British firms who, in pursuance of its instructions, refuse to supply goods to aliens domiciled or carrying on business in neutral countries whose names appeared in the Foreign Office statutory list and thereby committed breaches of their contracts which, according to the laws of the neutral State, will expose them to counter claims by the said aliens and thus prevent them from recovering pre-war debts duo. from the aliens in question, and further has declined to allow such debts to be registered for collection from Germany under the Treaty of Peace; and whether the Foreign Office will take immediate steps to secure the payment of such debts out of funds belonging to alien enemies now vested in the Public Trustee or to enforce the same against the German Government?
§ Sir H. GREENWOODProvision is made in Section 10 of the Peace Treaty with Germany for the dissolution of all contracts between enemies, enemies being 1479W defined as persons between whom trading shall have been prohibited by, or have otherwise become Unlawful under laws, Orders or Regulations to which one of the parties was subject. Provision has, in so far as possible, been made for redress being obtained in the event of a decision by a competent Court which is contrary to this stipulation; but it is not possible to afford satisfactory protection in the case of a contract with a neutral firm. In respect of debts owing by German to British nationals all practicable protection has been afforded to the latter, both by provision for a special tribunal for the consideration of such matters and by the creation of a charge upon German assets in the United Kingdom. It is impracticable to apply such machinery to the collection of debts due by the nationals of neutral States.