293
proceedings in the Shanghai Court to compel the Gas Com-
pany to recognise the Hong Kong Probate".
We were of course quite aware that our Clients are
at liberty to adopt such a course, but with all defer-
ence we are certainly not inclined to advise them to
embark on protracted and expensive litigation on such
an uncertain question. From the information obtained
by Sir Edward Grey and contained in the letter from
the Foreign Office, it must be quite clear to him that
the general question involved is from the point of view
of the officials of Companies in Shanghai and the
Revenue Authorities there a very important one and
that in all probability even if our Clients were success-
ful in a Court of first instance an Appeal would pro-
bably result which might be taken to the Privy Council
before the matter was finally decided.
In the present instance as you are aware our Clients
were bound to realise the assets with as little delay
as possible and in taking out a grant in Hong Kong in
respect of other assets they were advised by the
Solicitors representing us and also by Mr. Sharp, K.C.
of Hong Kong that duty was properly payable in Hong Kong
in respect of the Shanghal Gas Company Shares upon
the ground that the registered office of the Company
was situate in Hong Kong. Then when our Clients ap-
plied to have the Shanghai Gas Company shares regis-
they tered in their names in order to realise them,
were informed by the officials of that Company that
they could not recognise the Hong Kong grant and we
were therefore bound to pay the duty to avoid waste
of time.
The point thet we wish brought to Sir Edward
Grey's notice is that both in Hong Kong, a British
Colony, and in Shanghai, a Treaty Port, duty has been
claimed by officials who are responsible to the Home
Government. It is grossly unjust that such a state
of things should be permitted to exist, and we care
not whether the duty is refunded as Hong Kong duty
or Shanghai duty, but we submit that the Treasury are
morally bound to decide which duty is properly pay-
able and to see that one or other of the duties is
refunded.
in
Dole
We