77 
3. (1.) In the Order in Council issned with refe- 
rence to the departure from Our Ports of enemy ves- 
sels, 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 ship- 
owner shall have first satisfied himself that the ar 
ticles 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 follo 
wing 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 Ser 
vices 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 trans 
actions; 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 pro 
clamation 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 incor 
porated bodies, enemy character attaches only to those 
incorporated in an enemy country. 
4. The expression “outbreak of war” in this Pro 
clamation 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 depen 
dencies. 
List of Prohibitions. 
The following prohibitions now have effect (save 
so far as licences may be issued as hereinafter pro- 
vided): 
(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 pay 
ment, negociating or otherwise dealing with any nego- 
tiable 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.