COPY
BRITISH CHAMBER OF COMMERCE
HANGHAI
. C. Gillett, Esq.,
Consul-General
H.B.5. Consulate-General Shanghai.
27 Chung than Road
(Eastern 1)
20th September, 1948.
14
sir,
As members of the hares Sub-Committce appointed by the British Chamber of Commerce of hanghai to consider and advise on matters relating to shores of British Companies registered in H.ngcon, pursuant to the provisions of Proclamation No.27 (Emergency Registration of Chim Companies) we have the honour to address you on a matter which we consider to be of vital importance to the Companies concerned.
On the 20th September 1947 the Registration of China Companies Regulations 1947 were made which provided (inter alia) that it should be co putent or a Company registered in Hongkong under the Proclamation No. 27 and whose share a pital was expressed in any currency other than Hongkong dollars or pounds sterling to convert the currency of such œpital and to alter the denoɛina- tion of the shares into which the capital was divided.
At the time the above Regulations wer made the capital of practically cvery 6 mpany concerned was expressed in Chinese currency. This currency was then depreciating in value to such an extent that it was imponsible for the companies to keep rialistic books of account or to compile realistic Balance Sheets in that currency. The Companies therefore, with few exceptions only, converted their capitals into Hongkon dollars or pounds sterling pursuant to the provisions of the Regulations.
At this point it may perhaps be of importance to rese ber that all the Companies concerned were orginally loated and registered in hanghai there the whole of the original and any Bubeequent increases of œpital ere subscribed locally, and, with the exception only that they have cstablished Registered Officce in longtong under the roclamation and have converted theirowitals under the Regulations, their businesses are still operated and controlled from here. Their properties and fixed assets are located here. They derive their incomes and discharge their obligations here in Chinese currency. They employ large numbers of Chinese personnel. They have obtained Certificates of admi: sion from the Chinese ⠀uthorities under the Company Law of China whereby they are permitted to carry on business in China. And kinally they pay hinese taxation.
For/
74