OP Y.

Enclosure 1.

Hon. Colonial Secretary,

C.O.

35663

Rece

10 4 1 OCT 08

The Section as it stands was approved by

365

the Chambers of Commerce of Shanghai and Hongkong, and further

the Section was amended at the instigation of the Shanghai

Chamber of Commerce so as to provide that the fee should be

assessed on "the paid up" rather than "the nominal " value of

the Company, and that Chamber also expressed the opinion that

the Ordinance "will give those Companies who transact their

"business outside of Hongkong all that they can fairly ask for".

In the correspondence attached to the

letter of the Hongkong China Association the Shanghai Branch

said "a more or less substantial fee could be charged for the

"licence varying with the amount of the capital of each

"Company".

The above is I think a complete refutation

of the allegation of hardship in the Consul-General's letter.

I would suggest that the remarks of the

Registrar of Companies may be invited on the point.

15th. August, 1908.

(sd.) W. R. Davies,

Attorney-General.

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