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ds

a19d.

vistɓiedus

12.

beatoxsxS

here of the 12th April last,

26

Later Sir Arthur Churshman, who had already been appointed Managing Direator hers of the 'China Company", so as to comply with Article 4(1) of the new Order in Council of 1919, informed you that the Bourd of the home Company found dificulty in agreeing with the suggestion to transfer the control of the

Jompany's interests in the last to llongkong.

After consultation with myself, you told Six »rthur Jhurahan that, as you considered the grunting of exempting

licences would in fact invalidate the order in Council of

1919, you personally would prefer that if any change in the

interests of the British american Tobacco 7, std. were mide, it

should be by way of an Crder in Council frankly exempting that

Company aims from the restrictions of the 1919 Ozäez.

Even if the proposed transfer of control to llongkon

und of the Company to the llongkong Magister, connot be arze the reasons which have led me to advise against the givin

a power to H., Minister to grant licenses of exemption Ix/

the provisions of Articles 3 & 4 of the New Order in Cor

of 1919 hold good and may be re-stated cg follows:-

1, The transfer of all China Companies heretofort

under non-British control to Jritish control has

practically completed (the only outstanding star importance being that of "he British mieiican

Co. 14).

2. If licences allowing non-British managment

China Companies were under any oireumstances obtui

a most invidious and difficult task would be set ka.

Minister, and the kegistrar and also the Crown »dvə

as his technical udvisez in such matters.

5.

If such lioenoan were obtɛ.imbld, the foret

effect of salutuxy provisionu, the need of which

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