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3.  (1.)  In  the  Order  in  Council  issned  with  reference
  to  the  departure  from  Our  Ports  of  enemy  vessels,
  which  at  the  outbreak  of  hostilities  were  in  any
such  Port  or  which  subsequently  entered  the  saure,
the  word  “enemy”  as  applied  to  either  ships  or  cargo,
shall  he  demed  as  from  this  dato  to  include  Austro-Hungarian
  ships  or  cargo.
(2.)  In  the  application  of  this  Article  to  Austro-Hungarian
  ships  the  dato  Satnrday,  the  Pifteenth  day
of  August,  shall  he  substituted  for  the  date  mentioned
in  Article  2  of  the  said  Order  in  Council,  and  the
date  Saturday,  the  Twenty-second  day  of  August,  shall
be  substituted  for  the  date  mentioned  in  Article  3  of
the  said  Order  in  Council.
4.  The  Proclamation  specifying  the  articles  which
it  is  Our  Intention  to  treat  as  Contraband  of  War
during  the  war  with  G-ermany  shall  be  deemed  to
specify  the  articles  which  it  is  Our  Intention  to  treat
as  Contraband  of  War  during  the  war  with  Austria-Hungary.

5.  In  the  Proclamation  forbidding  the  carriage  in
British  vessels  from  any  Foreign  Port  to  any  other
Foreign  Port  of  any  article  comprised  in  the  list  of
Contraband  of  War  issued  by  Us,  unless  the  shipowner
  shall  have  first  satisfied  himself  that  the  articles ­
  are  not  intented  ultimately  for  use  in  the  enemy
country,  the  words  “enemy  country”  shall  be  deemed
as  from  this  date  to  include  the  Dual-Monarchy  of
Austria-Hungary.
Given  etc.  etc.  this  Twelfth  day  of  August  1914.
OFFICIAL  EXPLANATION.
The  following  official  announcement  was  issued
by  the  Treasury  on  21  st  August.
Lome  doubts  having  arisen  as  to  the  meaning
and  application  of  the  proclamation  against  trading
with  the  enemy  the  Government  authorise  the  following ­
  explanation  to  be  pnblished:
1.  For  the  purpose  of  deciding  what  transactions
with  foreign  traders  are  permitted,  the  important  thing
is  to  consider  where  the  foreign  trader  resides  and
carries  on  business,  and  not  the  nationality  of  the
foreign  trader.
2.  Consequently,  there  is,  as  a  rule,  no  objection
to  British  firms  trading  with  German  or  Anstrian
Arms  established  in  neutral  or  British  territory.  What
is  prohibited  is  trade  with  any  firms  established  in
hostile  territory.
3.  If  a  firm  with  headquarters  in  hostile  territory
has  a  brauch  in  neutral  or  British  territory  trade  with
the  brauch  is  (apart  from  prohibitions  in  special
cases)  permissible,  as  long  as  the  trade  is  bona  fide
with  the  brauch,  and  no  transaction  with  the  head
office  is  involved.
4.  Commercial  contracts  entered  into  before  war
broke  out  with  firms  established  in  hostily  territory
cannot  be  performed  during  the  war,  and  payments
under  them  ought  not  to  be  made  to  such  firms  during
the  war.  Where,  however,  nothing  remains  to  be  done

save  to  pay  for  goods  already  delivered  or  for  Services ­
  already  rendered,  there  is  no  objection  to  making
the  payment.  Whether  contracts  entered  into  before
the  war  suspended  or  terminated  is  a  question  of
law,  which  may  fiepend  on  Circumstances,  and  in
cases  of  doubt  British  firms  must  consult  their  own
legal  advisers.
This  explanation  is  issued  in  order  to  promote
confidence  and  certainty  in  British  commercial  transactions; ­
  but  it  must  be  nnderstood  that,  in  case  of
need,  the  Government  will  still  be  free  to  impose
stricter  regulations  or  special  prohibitions  in  the
national  Interest.
The  Trading  with  the  enemy  Proclamation  No.  2
(of  Sept.  9).
1.  The  Proclamation  of  Aug.  5  relating  to  trading
with  the  enemy,  and  paragraph  2  of  the  Proclamation
of  Aug.  12,  together  with  any  public  announcement
officially  issued  in  explanation  thereof,  are  hereby
revoked,  and  from  and  after  the  date  hereof  this
present  Proclamation  is  substituted  therefor.
2.  The  expression  “enemy  country”  in  this  proclamation ­
  means  the  territories  of  the  German  Empire
and  of  the  Dual  Monarchy  of  Austria-Hungary,  together
with  all  the  colonies  and  dependencies  thereof.
3.  The  expression  “enemy”  in  this  Proclamation
means  any  person  or  body  of  persons  of  whatever
nationality  resident  or  carrying  on  business  in  the
enemy  country,  but  does  not  include  persons  of  enemy
nationality  who  are  neither  resident  nor  carrying  on
business  in  the  enemy  country.  In  the  case  of  incorporated ­
  bodies,  enemy  character  attaches  only  to  those
incorporated  in  an  enemy  country.
4.  The  expression  “outbreak  of  war”  in  this  Proclamation ­
  means  11  p.  m.  on  the  4  th  August  1914,
in  relation  to  the  German  Empire  its  colonies  and
dependencies,  and  midnight  on  the  12  th  August  1914,
in  relation  to  Austria-Hungary,  its  colonies  and  dependencies. ­

List  of  Prohibitions.
The  following  prohibitions  now  have  effect  (save
so  far  as  licences  may  be  issued  as  hereinafter  provided):

(1.)  Not  to  pay  any  sum  of  money  to  or  for  the
benefit  of  an  enemy.
(2.)  Not  to  compromise  or  give  Security  for  the
payment  of  any  debt  or  other  sum  of  money  with  or
for  the  benefit  of  an  enemy.
(3.)  Not  to  act  on  behalf  of  an  enemy  in  drawing,
accepting,  paying,  presenting  for  acceptance  or  payment, ­
  negociating  or  otherwise  dealing  with  any  negotiable
  Instrument.
(4.)  Not  to  accept,  pay,  or  otherwise  deal  with  any
negotiable  Instrument  which  is  held  by  or  on  behalf
of  an  enemy,  provided  that  this  Prohibition  shall  not
be  demed  to  be  infringed  by  any  person  who  has  no
reasonable  ground  for  believing  that  the  Instrument  is
held  by  or  on  behalf  of  an  enemy.