}
This Document is the Property of His Britannic Majesty's Government).
AFFAIRS OF CHINA.
341861
[September2]
25 SEP 07
SECTION 1.
CONFIDENTIAL
[26886]
No. 1.
Sir,
Foreign Office to Board of Trade.
Foreign Office, September 12, 1907. I AM directed by Secretary Sir E. Grey to transmit to you herewith to be laid before the Board of Trade, copies of correspondence which has passed with His Majesty's Minister at Peking, relative to the question of recognizing ships as British which are owned by Companies registered as British, but having a known preponderance of foreign capital.
Sir J. Jordan reported the case of a steamer registered at Shanghae as a British ship in the name of Mr. E. Moller, a British subject, who had applied to transfer the vessel from his own name to that of a Hong Kong registered Company. As the greater part of the capital and the majority of the shareholders of the Company in question were admittedly non-British, Sir J. Jordan pointed out that, according to the tenour of his previous instructions, the steamer when transferred would not appear to be entitled to British protection. At the same time it was stated that the Supreme Court at Shanghae had advised His Majesty's Consul-General that the Company was qualified to be the owner of a British ship under section 1 (d) of the Merchant Shipping Act of 1894, and that the transfer could therefore legally be made. Sir J. Jordan accordingly asked for instructions as to what course he should pursue in the matter.
As it was not clear what Sir P. Warren meant in his despatch to Sir J. Jordan of the 22nd December, 1906 (inclosure in Sir J. Jordan's despatch No. 6 of the 5th January last) by the words "is advised by the Supreme Court," Sir J. Jordan was directed to ascertain whether reference was made to personal advice tendered by one or both of the Judges of the Court or to a decision pronounced by the Supreme Court. Copies of previous correspondence relative to the point at issue were at the same time forwarded with the request that the Judge or Judges of the Court should be asked if by the light of these documents they saw reason to modify or add to their original opinion,
A despatch has since been received from Sir J. Jordan inclosing a statement of the views of Sir P. Warren, and of those of both of the Judges of His Majesty's Supreme Court at Shanghae.
As Sir J. Jordan points out, compliance with the instructions contained in Lord Salisbury's despatch No. 171 of the 13th October, 1898 (of which a copy is inclosed for convenience of reference), coupled with the enforcement of the views now expressed by Sir II. de Sausmarez, would apparently lead to the anomaly, exemplified in the present instance, of affording British protection to a ship belonging to a Company which is itself denied such protection.
The Board will no doubt recollect that in the case of the "Swatow," Kityang Launch Company, it was held by this Department that the decision must depend upon the interpretation to be placed upon the phrase "principal place of business" of the Merchant Shipping Act of 1894, and in this opinion the Board concurred in their letter to this Office of the 16th December, 1904. The points raised by the present case are clearly stated in Sir P. Warren's despatch to Sir J. Jordan of the 6th June last, and in each of the three categories to which he refers the decision appears t
to hinge on the interpretation to be placed on the phrase "principal place of business to which allusion has already been made.
Should it be held that, in the light of the Law Officers' opinion of the 23rd July, 1901, the application made by Mr. Moller cannot be entertained, the course to be adopted would appear to be clear as regards the steam-ship "Canton."
Should the contrary view be held it would seem impossible to avoid the anomally referred to above, of affording British protection to a ship belonging to a Company which is itself denied such protection.
* Sir J. Jordan, No. 296, June 20; ditto, No. 6, January 5; to ditto, No. 108, March 12, 1907. † To Sir C. MacDonald, No. 171, October 13, 1898.
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