companies are of course not affected any more than gɛ- nuine Colonial companies, since ex hypothesi in neither case do persons resident within the limits of the Urder exercise general or rubstantial control over them,
The driving of certain companies off our register and of certain vessels to fly other flags is in view of recent shipping incidents on the Upper Yazṛtes a contin- gency that need not cause alaru, During the war the dif- ficulty of dealing with such companies as the "Phranang Stemship Company, Limited, regarding which the Hongkong, Government forwarded correspondence with His majesty's Consul at Høibow towards the end of 1914 and enquired our position, casts doubt, I venture to think, on the desirability of encouraging aliens to take advantage of our laxity in controlling; the use of our flag.
It has been argued that a broad policy of giving the British name to concerne mainly alien affords a TR- luable advertisement as well as larger revenue and poli- tical prestige. But nowadays the Chinese are mot im- pressed by such pretension and resent the cloaking of native concerns under a foreign flag: and, no far as I am aware, no department of His Majesty's Government has ever approved such a deceptive policy.
The Kwangtung Tramways Company, Limited appears on the list at this office as a Hongkong-China company to which the new Urder does not apply.
The boong Un Steamship Company was wound up laat year: the stomers under its alleged ownership had been joved from the Shanghai to the longkong register some
years/
i
1
years ago
Au to the discrimination asserted in the 14th,
paragraph of Ris Excellency the Governer's despatch,
I submit that that discrimination is between "hina
companies and all others and that the Colony is con-
darned solely because the dongkong: Government still
draws the revenue derived from China companies over
which it neither exercises any territorial control nor
can afford any effective protection.
I have the honour to be,
Sir,
Your most abedient,
hrabia servant,
(Sd) E. H. Fraser.
Consul-General and Registrar of
Companies.
14