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230
if we got rid of some companies which have no real connection
with either British territory or British nationality. This
latter remark does not apply to companies like the Sincere
Company Limited and the British-American Tobacco Company (China)
Limited, and even in the case of some purely Chinese companies
it might be just as well to have them on our register. For example, a shipping company which was driven off our register would transfer all its ships to a foreign flag.
16.
I admitthat it is difficult to reopen so soon
the question of the soundness of legislation which has just
been enacted, and the public appearance of so sudden a volte
face cannot be disregarded entirely, but in the absence of any
clear evidence of necessity for the new provisions referred to
I venture to suggest that their usefulness is outweighed by
their drawbacks.
17.
It may be that a way might be found out of the
difficulty by taking power for the issue of licences by you
exempting approved companies from the operation of particular
articles of the China (Companies) Orders-in-Council. If this
proposal were adopted the discretion of course would be yours,
but I feel sure that you would be prepared before-hand to
discuss generally its application to bona fide Hongkong enter-
prises.
18.
I shall be much obliged for Your Excellency's
views on the subject, and I would again suggest that no action
should be taken under Articles 3 or 4 of the 1919 Order until
the matter has been fully discussed between all the authorities
concerned or interested,
I have, etc.
Sd.
R. E. STUBBS,
Governor,&c.