i
2
discretion has to be used, extremely common, and definite instructions appear very desirable.
your
While on the subject there is one other point on which I should like to have opinion. It is whether a firm in Hong Kong which is entitled to British protection in China is justified in carrying on a branch establishment in Canton under purely Chinese local management. Such an arrangement, especially in cases where the bona fides of British ownership is not above suspicion, appears very undesirable, and is always looked askance on by the Chinese authorities. I should like to be able to insist that the local manager be a British subject.
I have, &c.
(Signed) R. W. MANSFIELD.
[This Document is the Property of His Britannic Majesty's Government]
AFFAIRS OF CHINA.
CONFIDENTIAL.
[10906]
(No. 77.) Sir,
No. 1.
17
15537
RECR [A6.2 MAY 07
SECTION 12.
Inclosure 3 in No. 1.
Sir J. Jordan to Consul-General Mansfield.
(No. 3.) Sir,
February 14, 1907. WITH reference to your despatch No. 7 of the 25th ultimo, I desire to state that the Circular of the 7th December last on the subject of the Consular protection of Companies registered in Hong Kong or in England is based on Lord Salisbury's despatch of the 18th October, 1898, a copy of which was sent to you in Sir Claude MacDonald's despatch No. 18 of the 28th October, 1898. You will see from Lord Salisbury's despatch that it is quite clear that the word "majority" applies to the Managing Board of Directors as well as to the shareholders.
The answer to your question whether the Foreign Office instructions should be adapted to the case of firmos appears to me to be in the affirmative. At the same time I should point out that, whether Companies or firms, discretion must always be exercised. In each case the nature of the business which is being in fact carried on must be looked at, and no hard and fast line can be laid down as to the amount of interest which entitles a Company to British protection,
As regards the point mentioned in your concluding paragraph, I should not refuse British protection to a British firm of Hong Kong which is carrying on a branch establishment in Canton under purely Chinese local management; but if you have grounds for suspecting the bona fides of the British ownership of the branch establish- ment, I consider that you would be justified in insisting that the local manager should be a British subject, or in taking any other reasonable steps to remove the suspicion of doubtful ownership.
I have, &c. (Signed) J. N. JORDAN.
Sir J. Jordan to Sir Edward Grey.-(Received April 6.)
Peking, February 11, 1907. IN your despatch to Mr. Carnegie No. 310 of the 7th September, 1906, you authorized the issue of an urgent King's Regulation to be added to the Tien-tsin Land Regulations, enabling the land-renters to impose a tax of per mille on the value of goods landed, shipped, or transhipped at any place within the limits of the Settlement, in order to provide ways and means for the improvement of the Taku Bar and the conservancy and the improvement of local waterways.
At the time the despatch was received there was still considerable Freuch opposition to the scheme for the improvement of the Taku Bar, and it was therefore considered advisable to delay the issue of the Regulation.
As reported in my despatch No. 25, Confidential, of the 15th instant, the consent of the French Minister has now been obtained to the scheme, and I have therefore issued the Regulation, of which I have the honour to inclose a copy.* The body of it is identical with that sent to you in Mr. Carnegie's despatch No. 278 of the 25th June, and approved by you in your despatch mentioned above.
* Printed separately.
[2450 ƒ-12]
I have, &c. (Signed) J. N. JORDAN.