their duties and obligations towards Us, Our Crown, and Government:

Now, therefore, We have thought fit, by and with the advice of Our Privy Council, to issue this Our Royal Proclamation declaring and it is hereby declared as follows:

1. The aforesaid Proclamation of the 5th August, 1914, relating to trading with the Enemy, and paragraph 2 of the aforesaid Proclamation of the 12th August, 1914, together with any public announcement officially issued in explanation thereof, are hereby, as from the date hereof, 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 II P.M. on the 4th August, 1914, in relation to the German Empire, its colonies and dependencies, and midnight on the 12th August, 1914, in relation to Austria-Hungary, its colonies and dependencies.

5. From and after the date of this Proclamation the following prohibitions shall have effect, (save so far as licences may be issued as hereinafter provided), and We do hereby accordingly warn all persons resident, carrying on business or being in Our Dominions

(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,

negotiating 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 deemed 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.

(5) Not to enter into any new transaction, or complete any transaction already entered into with an enemy in any stocks, shares, or other securities.

(6) Not to make or enter into any new marine, life, fire, or other policy or contract of insurance with or for the benefit of an enemy; nor to accept, or give effect to any insurance of, any risk arising under any policy or contract of insurance (including reinsurance) made or entered into with or for the benefit of an enemy before the outbreak of War. (7) Not directly or indirectly to supply to or for the use or benefit of, or obtain from, an enemy country or an enemy, any goods, wares or merchandise, nor directly or indirectly to supply to or for the use or benefit of, or obtain from any person any goods, wares or merchandise, for or by way of transmission to or from an enemy country or an enemy, nor directly or indirectly to trade in or carry any goods, wares or merchandise destined for or coming from an enemy country or an enemy.

(8) Not to permit any British ship to leave for, enter or communicate with, any port or place in an enemy

country.

(9) Not to enter into any commercial, financial or other contract or obligation with or for the benefit of

an enemy.

(10) Not to enter into any transactions with an enemy if and when they are prohibited by an Order of Council made and published on the recommendation of a Secretary of State, even though they would otherwise be permitted by law or by this or any other Proclamation.

And we do hereby further warn all persons that whoever in contravention of the law shall commit, aid, or abet any of the aforesaid acts, is guilty of a crime and will be liable to punishment and penalties accordingly.

6. Provided always that where an enemy has a branch locally situated in British, allied, or neutral territory, not being neutral territory in Europe, transactions by or with such branch shall not be treated as transactions by or with an enemy.

7. Nothing in this Proclamation shall be deemed to prohibit payments by or on account of enemies to persons resident, carrying on business or being in Our Dominions, if such payments arise out of transactions entered into before the outbreak of War or otherwise permitted.

8. Nothing in this Proclamation shall be taken to prohibit anything which shall be expressly permitted by Our licence, or by the licence given on Our behalf by a Secretary of State, or the Board of Trade, whether such licences be especially granted to individuals or be announced as applying to classes of persons. 9. This Proclamation shall be called the Trading with the Enemy Proclamation, No. 2.

Given at Our Court at Buckingham Palace, this Ninth day of September, in the year of our Lord one thousand nine hundred and fourteen, and in the Fifth year of Our Reign.

God Save the King.

CHAPTER VII

SOME PARTICULAR CONTRACTS (continued)

INSURANCE OF PROPERTY, LIFE INSURANCE,

PARTNERSHIP, AND SALE OF GOODS

INSURANCE OF PROPERTY.

We shall now attempt, in the brief space that can be allotted to this subject, to state the effect of war (1) as the law stood before the recent war, (2) under the emergency legislation, and (3) as the law now stands after five years of war. We shall find, as is to be expected, that it is mainly the insurance of property at sea that will claim our attention.

1. Before the recent war.

After some contrary decisions by Lord Mansfield it was definitely settled in 1802 in the case of Furtado v. Rogers1 that an insurance of enemy property by a British subject against the effects of British capture or (Brandon v. Curling)2 of capture by our Allies is absolutely illegal and void, whether the contract is made before the war (as in Furtado v. Rogers) or a fortiori during the war. Upon principle a contract to indemnify a neutral against the consequences of the seizure of his property by British or allied forces and its condemnation in prize would be contrary to public policy and illegal and void. Further, a policy, whether effected before the war or attempted to be effected during the war, whereby an enemy is insured against loss or damage occurring during the war, whether from belligerent or ordinary risks, is void; this is clear from the statement contained in Brandon v. Curling that

'where the insurance is upon the goods generally [the underwriter being a British subject], a proviso to this effect shall in all cases

1 (1802) 3 B. and P. 191. Kellner v. Le Mesurier, and Gamba v. Le Mesurier in (1803) 4 East are to the same effect.

2 (1803) 4 East, 410.

be considered as engrafted thereon, viz., Provided that this insurance shall not extend to cover any loss happening during the existence of hostilities between the respective countries of the assured and assurer. Because during the existence of such hostilities, the subjects of the one country can not allowably lend their assistance to protect by insurance the property and commerce of the subjects of the other'

a passage which is cited with approval by Lord Brampton in Janson's case1.

So the distinction (if it ever existed) between an insurance of enemy property against British or allied capture and an insurance against ordinary non-belligerent risks can no longer be made.

No loss or damage whatever occurring during the war of or to enemy property, can, therefore, be recovered from a British insurer either during or after the war.

Moreover, it appears to be safe to say upon the analogy of the cases of long term contracts for the sale of goods discussed in Chapter IV that although the duration of a policy upon enemy property which is current upon the outbreak of war may possibly outlive a short war, yet the policy will not revive but is completely abrogated.

Janson's case makes it clear that a loss occurring before war, though during strained relations, is recoverable by an enemy subject from a British insurer at any rate after peace is declared, and that capture by the enemy subject's own government before war is quite a properly insurable risk.

Potts v. Bell2 shows that insurances by a British subject upon property involved in illegal trading against any risks, belligerent or not, are illegal and void3.

But insurances in respect of licensed trade are valid, whether effected by the person licensed or by his correspondents in the enemy country, for 'the Crown in licensing the end impliedly licenses all the ordinary means of obtaining that end3.'

1 [1902] A. C. at p. 502.

2 (1800) 8 T. R. 548.

3 Usparicha v. Noble (1811) 13 East, 352.