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I think that all life companies should make their
deposit on registration in Hongkong or in Shanghai
for transfer to Hongkong whether they are China Com-
panies or not. The difficulty which Mr. Kemp antici-
pates would thus be provided for. The power of
exemption should in the case of a China Company be
exercised by His Majesty's Minister subject to the
enforcement of a deposit in Hongkong in cases where
such exempted company opens business there.
Auditors. Clause 6 (3) only meets my point in part.
We should have some difficulty in preparing a list
of auditors, and Sir E. Fraser, who as His Majesty's
Consul-General in Shanghai will be Registrar of
Companies in China, thinks, and I agree with him,
that we are better without the list and that the
control in the Order-in-Council is sufficient. The
difficulty could be met by excepting the applica-
tion of Section 16 of the Companies, amendment,
Order-in-Council to China Companies.
Hongkong Companies. I quite sympathize with Mr.
Kemp's dislike of the term and the inconvenience it
causes is patent when in discussing questions it is
necessary to differentiate between a Hongkong
Company