3.

-3-

(f) For the purpose of this article the term

"British subject" shall in the case of

any person of Chinese race be deemed to

include only such persons of Chinese race

as have received Denationalisation Certi-

ficates from the Chinese Government and are

also British subjects.

70

The chief drawback to the Ambassador's proposals,

which renders them, as they stand, unacceptable to this

Government, lies in the exclusion from the definition of

"British subjects" of those Straits-born Chinese who are

British subjects in fact and in all but name, and who are

unable to obtain Denationalization Certificates from the

Chinese Government. Owing to the fact that few Straits-

born Chinese have as yet been successful in obtaining these

certificates, the effect of the Ambassador's proposals

would be to exclude the vast majority of locally incorporated

This would be an China companies from operating in China.

intolerable hardship on a section of the community which

looks upon itself as British and considers itself entitled

to the protection and benefits accruing from domicile under

the British Flag.

4.

Furthermore, there appears to be little or no

object in insisting that the chief local representative

and two-thirds of the persons having authority to sign on

behalf of a company in China shall be British subjects,

so long as the controlling interests are British, or at

least Straits-born.

It is certain that the various branches

in China of locally incorporated Chinese-owned companies

are managed in most cases by persons who are full Chinese

subjects and are not even Straits-born.

This is likely

to

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