:
36
Enclosure MI in Sir S.W. de Sausmorlys
despatch to 12 of 25th March 1911.
Memorandum on History o;
Law as applicable in Chi
2000
Rece RAGE 13 APR
13705
10 APR 1911
The correspondence on the subject of an Order in
Council dealing with a local registry for the registration
of joint stock companies in China is not available in
Peking or Shanghai. Sir J. Jordan tells me that he has
asked that I may be supplied with what is needful from
the Foreign Office, but as I believe the difficulty
turns on the question of His Majesty's extraterritorial
rights I think I may venture to express an opinion, at
the same time craving leave to add to this memorandum
should later papers show it to be desirable that I
should de sc.
I would first premise that the correspondence 13
thirty years old, and though no doubt the lar on the
subject of joint stock companies wes well understood in
1880, the practice of incorporating companies for all
sorts and sizes of undertakings has been enormously
extended since that date, until it has become the
vehicle by which is conducted a great proportion of the
commerce of the world. A large part of the business of
Shanghai is carried on by joint stock companies and there
is not the lenst objection on the part of the Chinese
authorities or populace to depl with and recognize
companies rather than individuals, Indeed combination
for financial or mercantile purposes in various forms
is of very ancient standing amongst this essentielly
trading people, nor has it ever required the recognition
of the Government. Were there any doubt as to this the
Mackay Treaty, Article 4, lays it to rest, there is provision for the recognition of our joint stock companies
and of our company law in that article.
May