COPY.

No. 1.

C.O.

17906

LOR

Shanghai, 23rd February, 1912.

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Dear Rees Davies,

135

I am writing to you direct on the question of

the registry and the jurisdiction of the Courts, I don't think we

ought to have any difficulty in concluding matters. Would it be

possible for you to come up to Shanghai and see for yourself how things stand? We should be delighted to see you, and put you up.

I don't think my suggestion as to the regis-

-try goes beyond what we expected Hongkong to do when we asked you, in

Hurst's words, to take over our scheme". The elaboration of the

jurisdiction question is my own.

The points which we aimed at by the establish- -ment of a branch of the London registry in Shanghai were:-

1. Facility on the spot for the incorporation of British Companies in China.

2. The provision for such companies of an ascertained body of company law.

3. The establishment of an office where all acts can be done

and returns made without the necessity of communication with London. 4. Provision for the jurisdiction of the British Courts in China over such companies, to the exclusion of the English Courts.

It was this scheme we proposed that Hongkong should take over for various reasons. There is no difficulty about 1 and 2: the application to China of the Hongkong Ordinance and the provision for forwarding papers through his deputy to the Hongkong registrar of Companies covers them.

I think 3 a necessity even with Hongkong substituted for London; and I take it the only objection from your point of view is one of expense. I do not think this ought to present any great difficulty.

As regards 4

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the words "to the exclusion of the English Courts" are perhaps tentative, but it was clear to my mind that any system which would render a Company doing business in China liable to be haled to London was open to a grave objection. Your alter-

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