!
opy.
:. 142 (6680/23)
(and 3 copies),
H.B.. Consulate General,
Shanghai.
Sir
433
September 12th, 1925.
With reference to your despatch lo. 53 (1890/25) of
5th April last on the subject of the fees payable by the
British American Tobacco Co. (China) Ltd., I have the honour
to submit the following observations.
The question of the annual 4 cents fee per $100 of paid-
up capital was raised by the Company in aroh, 1919, vhon &
request was made for a reduction of the fee to a reasonable
cum on the grounds that the Company was a private one and also
that it included several subsidiary companies. The Hongkong
Government held that no case had been made out for reduction
and the Company announced in their letter of December 3rd,
1919, (which was forwarded to 1.. Legation in Shanghai
despatch No. 378 of 4th December, 1919) their intention of
contesting the legality of the charge. The despatch from
the Secretary of State for the Colonies of January 11th,
1923, would appear to indicate that this intention is about
to be carried into effect.
On the question of the fairness of the fee, H.E. the
Governor maintains that, under section 7 (4) of the Companies
Ordinance (No. 31) of 1915 (as amended by section 24 of the
Ordinance of 1921) this fee is levied in lieu of the Hongkong
Bete te and Transfer duties from which China companies are
exempt.
As regards Probate and Estate duty, Sir H. De Saumarez
in/
Ronald Kacleay, X.C.H.G.,
His Majesty's Minister,
Peking.