60

assets in priority 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

position

to apply to the purchase of Chinese banks

to Sestion women he less objectionaber if 16

in Hong Kong, and in this case

effects were

case effects

сабеле

confined to the liquidation of banks, provided

A'

that a satisfactory definition of banks or

banking is included in the Ordinance.

shall accordingly be glad if you will

consider an amendment of the section to

limit its effect to banking business

H

including companies, which, in your opinion

and

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(*2643-150) Wt. 16318-94 15,000 7/38 T.S. 695

C. O.

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