21/20.

sir:

SHANGHAI.

16th March,

1920.

545

The China Companies (Amendment) Order in Council, 1919.

and

The British American Tobacco Company (China) Limited.

have the honour to acknowledge receipt from you of copies of the following letters:-

Mr. Kennett to yourself of the 12th instant, and Mr.

Kennett to H. M. Minister of February 11th.last. The facts

therein referred to are, I understand, as follows:-

(a)

The British American Tobacco Company (China) Ltd.,

are desirous of complying with the provisions of the new

China Companies Order in Council, that is to say, to place

the control of the China Company and its subsidiary China

Companies under British management, instead of as heretofore

under practically American management.

(D)

That the Company have been informed by you that,

as they are taking steps to comply with the new order in Council, no hasty legal action would be instituted by you

against them in view of the practical impossibility of their making all due arrangements before the coming into force, to-day, of Article 4 of the new order in Council.

(c) That as a means of immediate compliance with the provisions of Article 4, it is suggested that Sir Arthur Churchman, a British Subject, could be appointed Chairman of

the

Everard Fraser, K.C.M.G.,

H.M. B. Consul-General and Registrar of Companies,

SHANGHA I.

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