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extraterritorial rights and would know that if it were necessary
to sue the company action would have to be taken in the
Consular Court where English law would apply, and they feel
that it will obviate possible objections to the grant of the
licenses if they apply for exemption only in respect of
documents which are seen by the public purchasing their goods,
with whom it could hardly be held that they had entered into
financial transactions. The reason for the formation of
the new companies and for the application, is that they wish,
on account of the prevailing prejudice and discrimination
against foreigners and foreign firms, to get rid of the
"British" and "American" so far as the purchasing public is
concerned.
2. At first sight it is difficult to see any objection
to allowing a firm to drop the characters for "British firm"
if they wish to do so, and the terms of the last paragraph
of Section 93 (2) of the Ordinance would appear to give no
unlimited discretion to do so in the case of a China Company.
An examination of the records and correspondence on file here
in the Legation relating to these and cognate provisions, of
which I enclose a précis in case it may be of assistance to
you, appears to show, nevertheless, that such an application
is not one lightly to be granted.
3. The prime object has doubtless been to ensure that
persons entering into financial relations with a British company
should be aware of its nationality and in the case of a China
Company that proceedings against it would have to be taken in
a British court, but it seems clear that behind all the
enactments and amendments there has also been the feeling that
the mismanagement of Chinese firms which might be mistaken for
British/