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No.47/20.
Shanghai,
1st June, 1920.
48
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You have asked me to advise you as to the matters touched on by Sir Reginald Stubbs, the Governor of Hongkong, in
his despatch to H. M. Minister, Peking, of the 22nd April last, and of which His Excellency sent you a copy, in which it is pro- posed that the enforcement of the China (Companies) Amendment Order-in-Council, 1919, may be postponed.
His Excellency's attention does not appear to have been drawn to the colonial records in regard to the former inadequacy of control over companies incorporated in Hongkong but carrying on business outside the Colony, even when genuinely British controlled enterprises, which they very frequently were not: the difficulty which led to the holding of a conference at the Foreign Office in 1913 between the departments concerned.
The effects of the conclusions then arrived at are, for the most part, embodied in the China (Companies) Order-in- Council, 1915, and the Hongkong Companies Ordinance, 1915. It was decided at the conference referred to that steps were to be taken to insure that companies enjoying British protection in China should in future be really British in character, and under effective British jurisdiction.
Sir John Jordan, Sir Havilland de Sausmarez, and you yourself attended the conference as representing British inter- ests in China; and a clear resume of the facts which the confer- ence dealt with is to be found in Sir Havilland's Instructions dated 1st January, 1916, to H. M. Consular Officers in China in regard to the Order-in-Council of 1915 above referred to.
Sir Everard Fraser, K.C.V.G.,
His Majesty's Consul-General,
Shanghai.
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