molosure in Sir John Jordan'a No.
Consular of June 24th
1913.
No.9.
sir:-
SUPREME COURT,
Shanghai, May 31st, 1918,
Received
June 12th, 1918)
C. O.
527
30255
23218
IR:CR
?
17 JUL 131
Mr. Fraser has sent me a copy of his desiatoh to you
on the subject of companies. I do not think that there is much disagreement between us, but I think it advisable to
shortly deal with his points.
It is quite true that I was
unable to accept modifications of the principle of the scheme
embodied in my draft, for it was drawn in accordance with
The definite instructions from the Secretary of State.
following five points seem to call for remark.
1.
Provision against forward contracts I have already
Given that dealt with in connection with the draft Order.
it is efficacious, by all means let us have it.
2. The idea of limiting by law the nationality of share-
holders is quite new to English law. I have dealt with it as a commercial lawyer who dislikes restraints on trade unless they are necessary and officacious. Mr. Fraser considers that a cage is made out for such interference in
china. His experienos is much greater than mine, and it may well be that stronger provisions than I have inserted in my draft are necessary, but I do not think that the proposal
I understood that as to shareholders would be efficacious.
it was originally adopted to secure the reality of British nationality for the purpose of protection, and not for the
purpose of control.
3.
Nationality of promoters. It is not change of opinion,
but despair at finding a means which has led to my abandoning
A short illustra-
a provision for making promoters British.
tion