Formal notification was n on March 27, 1993, that the United States authorities did not intend to proceed further in that matter. Under these circumstances, the plaintiffs asked the trustees to cash the receipt and pay over to them the proceeds in accordance with the trust agreement. It now appears that an action has been begun against the present plaintiffs in a United States Court by the Tsingtao Cold Storage Ca., Ld., the assignees of the North China Cold Storage Ca. Inc., asking for damages for the original detention of the ship which they claim te have been wrongful and the agents of the plaintiffs in that action seek to restrain the present defendants from parting with or cashing the receipt. These defendants apparently hesitate to release the receipt unless they have the protection of an order of a British Court: hence these proceedings have been taken.
The material clauses of the Trust Agreement are as follows "IIT.—The trustees undertake not to cash the said deposit receipt until the expiration of the period of ninety days from the date hereof, and only then in the event of the question of the possible forfeiture of the vessel _by action of the United States of America having been settled in cur of the said Henry James Zimmerman, formerly registered owner, or other late interested American parties interested in the vessel. In the event of such settlement to the satisfaction of the trustees the trustees shall cash the said Teposit receipt and pay the proceeds thereof to L, H. Smith & Ca., in settlement pro tonto of the claim of the said L, H. Smith & Ca., which is_agreed as at May 21, 1992, Che foo L, C. $18,191.18, and of which the balance over the amount of the deposit recent, shall be paid in cash bed the North China Cold Storage "IV. In the event of forfeiture proceedings having been initiated the 'Trustees' shall held the said deposit receipt to the order of Messrs. Okura & Ca.'?.
"V_ In the event of no definite action having been taken at the instance of the Department of State of the United States of America, at the end of said period of ninety days, the Trustees will continue to hold the said receipt pending the settlement in one direction or the other of the said issue, referred to in paragraphs TIT and IV, to the intent that the said money shall only he applied to the discharge of the indebtedness of the said I. H, Smith Ca,, when the said vessel is out of danger of forfeiture process at the instance of the United States Government in connexion with the trans-for of the registry of the vessel,'
Text read from the printed page and cleaned; old type leaves the occasional error.