1

438

(13619/13).

with the fact that undesirable companies will try

and evade the restrictions which recognition as a Chine

company will impose and so defeat the object of the Order

in Council. This fuct has always been recognised, The

remedy is to put pressure on companies which are really

"China companies" to comply with articles 8-15 of the

Order in Council by an intimation that unless they do so

they cannot count on the unqualifled support of His

Majesty's Minister in China.

3. This point has already been dealt with as it is

raised in the despatch covering these notes.

4. The Intention was to vest the jurisdiction in

China exclusively in the Supreme Court.

Practically all

the China companies will be located at Shanghai and

while the new system is still in the experimental stage,

there would not appear to be any disadvantage in exclud-

ing the jurisdiction of the Provincial courts. They can

easily be given jurisdiction later.

8. (3). Sir E.Grey is not satisfied that the

words "or director" are superfluous and he considers that!

even if they are they may safely remain.

12.

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