supe to Young 2.

sparc)

25

-No. 739.

Copied to B.A. Shanghai. No. 37.

GOVERNMENT HOUSE,

HONG KONG.

1st October, 1938.

Sir,

hag

I have the honour to transmit the enclosed

copy of a letter received by this Government from a

local firm of solicitors.

2.

It is not clear what exact political

significance the term "Chinese Government of the

Province of Fukien" possesses but on the assumption

that it represents a foreign government as generally

understood, it appears that if the Provincial Bank of

Fukien sets up business in this Colony, it will be

entitled to claim the immunity at present enjoyed by

semi-governmental corporations by which it is not liable

to process in the local courts unless it expressly

waives that immunity.

3.

It appears from the solicitor's letter that

the Bank does not possess the chief characteristic of

a company, namely, the association of a number of

individuals for some common purpose, and, therefore,

cannot be registered under the ordinary law relating

to companies.

4.

It has been suggested that voluntary

incorporation might offer a solution but such action

does not appear to be acceptable to the Bank in question.

THE RIGHT HONOURABLE

MALCOLM MACDONALD, M.P.,

&C.,

&C., &C.

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