If any person within Her Majesty's dominions, without the license of Her Majesty, does any of the following acts; that is to say,—
(1)Builds or agrees to build, or causes to be built any ship with intent or knowledge, or having reasonable cause to believe that the same shall or will be employed in the military or naval service of any foreign state at war with any friendly state: or
(2)Issues or delivers any commission for any ship with intent or knowledge, or having reasonable cause to believe that the same shall or will be employed in the military or naval service of any foreign state at war with any friendly state: or
(3)Equips any ship with intent or knowledge, or having reasonable cause to believe that the same shall or will he employed in the military or naval service of any foreign state at war with any friendly state : or
(4)Despatches, or causes or allows to be despatched, any ship with intent or knowledge, or having reasonable cause to believe that the same shall or will be employed in the military or naval service of any foreign state at war with any friendly state:
Such person shall be deemed to have committed an offence against this Act, and the following consequences shall ensue :
(1)The offender shall be punishable by fine and imprisonment, or either of such punishments, at the discretion of the court before which the offender is convicted ; and imprisonment, if awarded, may be either with or without hard labour.
(2)The ship in respect of which any such offence is committed, and her equipment, shall be forfeited to Her Majesty :
Provided that a person building, causing to be built, or equipping a ship in any of the cases aforesaid, hi pursuance of a contract made before the commencement of such war as aforesaid, shall not be liable to any of the penalties imposed by this section in respect of such building or equipping if he satisfies the conditions following; (that is to say,)
(1)If forthwith upon a proclamation of neutrality being issued by Her Majesty he gives notice to the Secretary of State that he is so building, causing to be built, or equipping such ship, and furnishes such particulars of the contract and of any matters relating to, or done, or to be done under the contract as may be required by the Secretary of State:
(2)If he gives such security, and takes and permits to be taken such other measures, if any, as the Secretary of State may prescribe for ensuring that such ship shall not be despatched, delivered, or removed without the license of Her Majesty until the termination of such war as aforesaid.