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3.
These have been kindly given to me by my French co 11 engu o
and I attach copies both in the original text and in
translation. From them it will be seen that French
companies can only "enjoy the rights recognized by the
treaties between France and China" if they comply with
certain conditions, the principal of which, for the purpose
of this despatch, are sa follows &
"The President of the board of directors, the
managing directors, the auditors, at least two thirds
of those persons having authority to sign on behalf
of the company, at least one half of the subscribers
of a private company, of the directors and of the
committee of management shall be French citizens or
subjects, or nationals of a country under French
protection or manda te, The above requirement as to
nationality shall also be fulfilled by at least two
thirds of those persons with authority to sign on
behalf of the company being personnel of branches or
agencies in China.
The capital must be effectively owed, up to
35 per cent at the least, by French citizens or
subjects or nationals of countries under French
protection or mandate."
6. Unless we are to continue protecting and according
our extraterritorial treaty rights to interests that are
not British we shall have to do much the same sort of
thing as the French.
After consulting with the Judge and
the Crow Advocate I have come to the conclusion that it is
not possible to place any hard and fast restrictions as
to nationality on the shareholding of public companies;
but that is not really necessary for our purpose.
17.