44
they reside, while in regard to criminal proceedings against them they would have to be tried where they
committed the offence.
4. The question of Appellate Jurisdiction in regard to "Shanghat Companies" has not been touched upon in the previous correspondence, it it must be decided in
connection with any scheme #dcpted: and it occurs to me
to suggest that the present occasion might be turned to
account by arranging that appeals in such cases should be
heard, if in Hongkong, by a court consisting of the
Hongkong Chief Justice, the Hongkong Fuisne Judge and a Judge of His Majesty's High Court at Shanghai sitting
together, and, if in Shanghei, by a Court consisting of
the two Judges of His Majesty's High Court at Shanghai
and a Judge of the Supreme Court of Hongkong sitting
together. Such an arrangement right prove to be the
first step in bringing about the reconstitution of the
Hongkong Appeal Court on the lines proposed in the
correspondence ending with Lord Crewe's Confidential
Despatch of the 25th May, 1910; and the experience sc
gained would be useful in determining whether or not it
is practicable to make the proposed change in the con-
stitution of the Appellate Court general in its scope.
5. I will address you separately on the subject
of the so-called "Manila Companies", i.e. foreign com-
panies, formed and registered in Hongkong, but trading
in a foreign country other than China where there is
exterritoriality; for, as is pointed out in the 2nd joint
memorandum, action taken with regard to "Manila Companies"
will not affect our position as to "Shenghai Companies",
and will be unaffected by the suggested Order in Council.
I have etc.
(sd.) F.D. Lugard.
}
Tay
The Right Honourable
Lewis Harcourt, M.P.
etc., etc., etc.
Governor &c.