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there will be a Chief Local Representative in China, but such Representative will not be invested with any special powers as to the control of the Company's business in China, although he may possibly be a Member of the Board.

The Company has already an office in Hongkong, and a considerable portion of its business is already conducted from

there.

It is proposed that the Directors of British-American Tobacco Co,, (China) Ltd., shall be Sir H. Cuncliffe-Owen, Bart. who is not and will not be resident in Hongkong or China, Lord Acheson, Megara. T.F. Cobbs, Wm. Morris, W.B. Kennett and one other,four of whom will be resident in Hongkong. Of the above-named

Directors Sir H. Cuncliffe-Owen will be Chairman, Mr Cobbs Vice-Chairman, and Mr. Kennett Secretary.

It is possible that it may be considered desirable to keep alive British Cigarette Co., Ltd, for the purpose of continuing to hold the Trade Marka, because the Japanese Trade Mark Authorities accept & Company registered as a China Company as a British Company for the purpose of giving prior right to registration of Trade Marks in Japan under the Convention, where- as they will not give such prior rights to a Hongkong Company

as they contend that Hongkong is not included in the Convention with the United Kingdom.

In view of the re-arrangements necessary and the diversity of properties and interests to be dealt with, re-organization on the lines set out above must inevitably take some considerable time, but we feel confident that it would be possibly to complete the carrying out of the whole scheme not later than the end of

the present year.

I beg to request that you will inform the Company whether

the/

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