418
to creditors outside the local jurisdiction
the dividends are equated to those of English
creditors out of English assets. This
principle of the distribution of assets pari passu
is a prominent feature in the scheme of United Kingdom
company legislation, and you will no doubt
appreciate the desirability of maintaining this
principle, as its abandonment in a British Colony
would make it more difficult for His Majesty's
Government to arrange with foreign countries for
equality of distribution. I assume, however, that
the proposed section is primarily intended to apply
to the position of Chinese banks in Hong Kong, and
in this case I should see no objection to the section
if its effects were confined to the liquidation
of banks, provided that a satisfactory definition
of banks or banking is included in the Ordinance.
I shall accordingly be glad if you will consider
an amendment of the section to limit its effect
banking business
to, including companies which, in your
opinion after consultation with the Examiner of
Banks or of the Banking Advisory Committee,
transact banking business, e.g. the section might
Rioned Dec 108
be