Item 11: General William Holmes papers, September 1914-January 1915 - Page 148

[Page 148]

Defence
W. 175/2/13

German New Guinea      )-(    Effect of Surrender.
Opinion      

The surrender by the German Governor of Rabaul was of course not a cession of  sovereignty; it was in fact no more than a cessation of hostilities and an admission of the British Force into peaceful occupation.   In general terms, it may be agreed that the military occupation of an enemy's territory  attaches to it for most of the purposes  of the war a friendly character, and after the occupation trade with the place occupied would not be trade with the enemy, though of course it would be subject to such restrictions as the  occupant thought fit to put upon it.            

The extent of the territory covered by an "occupation" is one of the controverted points of International Law.   One view regards it as coterminous with the administrative unit in which it has been established if in fact resistance has ceased (Hall I.L. p.476)   The Hague Convention 1907 No. 4 Article 42 states that "a territory is considered to be occupied when it is actually placed under the authority of the hostile army. The occupation applies only to the territory where such authority is established and can be exercised."

It may be doubtful whether the mere surrendered by the Governor of Rabaul, even if expressed to cover all German possessions in the Pacific would put the Marshall,  Caroline,  the Pelew and Mariana Islands in British occupation.   But presumably there are some representatives of German authority in these places, and they must either recognise or repudiate the new condition of things. If  they recognise it and are in fact acting under the Allies' authority, they certainly would, in company with the other facts stated be a substitution of the British or Allied occupation for that of Germany.   In such circumstances, trade with the Islands would not be trade with the enemy, and it would then be for the  Allies to determine under what conditions trade should be permitted.