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2.
but they operate in China under British extraterritorial
Jurisdiction in competition with our own trade and
involve us in endless controversy with the Chinese
authorities.
3. If, therefore, there is to be an amendment
of the Order-in-Council I submit that it is worth while
to try and obtain a solution of all our difficulties
in this respect rather than to tinker ineffectually
with Article 194. It is in the hope that Your
Excellency will agree with this view that I have
evolved the following proposal in consultation with
Mr. Mossop, Mr. Friestwood and Mr. George. I regret
that there has been some delay in dealing with the
question, but the Judge and Crown Advocate have been
prevented by pressure of work from giving it the full
attention which it merita until recently.
The first essential is, of course, to have
a clear idea of our objective. It is not enough to
say that companies enjoying British protection and
jurisdiction must be bona fide British companies or
that they must contain a substantial British interest.
For the purposes of legislation we shall have to
define what is meant by "bona fide British" or
a substantial interest", and as that is a matter of
opinion the line to be dram in our definition will
have to be an arbitrary one.
5. The French with their logical outlook have
long recognized this and have produced in a concise
form regulations that are very much to the point.
These