1.
COPY
Translation. G.V.C. 14/10/35.
MEMORANDUM
From
Wai Chiao Pu
to
H.M. Ambassador.
Nanking.
150 Ench (10)
9th October, 1935.
(received 14th October, 1935).
The Ministry of Foreign Affairs present
their compliments to His Majesty's Embassy and have
the honour to state that they have received the
following communication from the Ministry of Finance:-
"When it is intended to establish a bank in
China, it is necessary to make an application to this
Ministry, in accordance with law, for an investigation
of the bank's capital, for registration and for the
issue of a licence, before business can be carried on.
The bulk of the business of banks which have their head
offices abroad and branches in China in the treaty-norts
and concessions is transacted with Chinese, notwith-
standing the fact that the banks are registered abroad,
and since foreign firms are relatively but little
concerned in the affairs of the banks' head or branch
offices, it is possible that as the banks are under
foreign jurisdiction, full consideration has not been
given to such questions as the actual figure of the
authorized capital, whether it has or has not all been
paid up, and the true state of affairs as regards assets
and liabilities, while the Chinese Government for its
part is at a loss for means of ascertaining (these facts)
and, likewise, for means of enforcing any supervision.
/ Last
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