(F 12316/12316/10).

Immediate.

My dear Gen't,

,,slupl

FOREIGN OFFICE,S.W.1.

ST

26th November, 1938.

15

With reference to your letter No. 53955/38 of

it

the 21st November about the project for setting up in

Hong Kong a branch of the Provincial Bank of Fukien,

the legal position as we understand it, is that nothing

in either international law or comity obliges a government

to allow a foreign government, or an organ of a foreign

government, to set up a trading or banking establishment

in its territory. For the very reason that immunity may

be claimed, the setting up of such an establishment by,

or by the organ of, a foreign government as such is

subject to the consent of the local authorities.

Soviet Trade Delegation in this country is a case in

point. The position is different if the foreign government

organ chooses to become incorporated under the local law,

The

G.E.J. Gent, Esq., D. S. O., O. B. E.

0.B.E.

thus

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