Please address all communications to the Legal Department.

BRITISH-AMERICAN TOBACCO COMPANY, LIMITED.

TEPHONE NO 8160 VICTORIA (6 LINES)

CODES USED - A.B.C. 5 & 6TH BENTLEYS,

LEGAL DEPARTMENT.

THE HON.F F. MACNAGHTEN,

A. M. RICKARDS.

J.K.PICKUP.

L.W.WIGG.

LE PEPPIATT.

Solicitor \ Assistant Solicitors.

TELEGRAPHIC Address, MACBATCO, PARL, LONDON

NATIONAL

FOR

CHENE

WESTMINSTER HOUSE,

Sir John S. Risley, K.C.M.G.,C.B.,K.C.

Colonial Office,

Downing Street, S.W.

Dear Sir John,

7, MILLBANK,

LONDON, S.W.I.

19th April

19 28

48

CHINA COMPANIES CAPITAL TAX

I have received a letter from the Solicitor

to British-American Tobacco Co. (China) Limited informing me

that the annual fee of 4 cents on each $100 of the paid up

Capital of the China Company is to be reduced to one cent,

but that it is however proposed to put an end to the present

practice of refunding the fees paid in respect of a subsidiary

company the whole of whose shares are held by another China

Company.

The amount of the tax payable by our China

Company, if the rate of tax is one cent per $100, is $24,798.89

and the refund which the parent China Company might claim under

the old rule would be $6,420.41.

I should be much obliged if you would give me

an appointment some time next week, other than Tuesday morning,

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