PUBLIC RECORD OFFICE
Reference :-
C.O.885
G
that the whole of the Directors are British, the protection so afforded would seem to he fairly effective and at any rate to be as much as it is practicable to provide.
6. It appears to us to be desirable that a standard form for the clause should b carefully considered and settled; and we would suggest that it might be discussed at meeting of the Colonial Office Concessions Committee with a representative of our solicitors present to advise in the matter.
I have, &c.,
37294
No. 2.
R. L. ANTROBUS.
COLONIAL OFFICE to ADMIRALTY, WAR OFFICE, AND INDIA OFFICE. [Answered by Nos. 4, 5 and 6.]
SIR,
Downing Street, 27 January, 1911. I AM directed by Mr. Secretary Harcourt to transmit to you, to be laid before the [Lords Commissioners of the Admiralty] [Army Council] [Secretary of State for India] a copy of a letter* from the Crown Agents for the Colonies with regard to the inclusion in contracts and concessions granted by Colonial Governments of a clause providing that such concessions shall not be held by, or assigned to, any but British subjects or limited companies British in character and control.
I am to enclose copies of clausest extracted from leases and concessions in which provision has been made for ensuring the British character of the lessees or conces sionaires, and to request that Mr. Harcourt may be favoured with the observations of their Lordships] [the Army Council] [the Secretary of State for India] on the matter and with copies of any specimen clauses which may have been adopted in similar cases by the [Admiralty] [Army Council] [Indian Government].
37294
No. 3.
I am, &c.,
HI. BERTRAM COX.
•
in India in respect of concessions which it is desired to keep in the hands of British persons or companies has been to provide in the agreement merely that the lessee or concessionaire shall not assign, underlet, or part with the premises without the previous consent in writing of the Government.
As an instance, may be cited the grants of oil-bearing land in Burma. In the year 1905 it was decided that the grant of oil concessions should be confined to British companies; but it was not considered necessary that the licences or leases should include any provision that the Company should be or remain British; and the Government stipulate only, as above stated, for their previous consent as a condition of any assignment of the premises.
The same may be said of the rather expanded clause enclosed herewith, which is taken from the draft of a lease of land in Perim Island to the Perim Coal Company now under consideration.
The view hitherto taken in India has been that, short of Government ownership of a majority of the shares, there is no system which would give absolute security against foreigners gaining control over any company by acquiring the voting power. But the subject is one which seems to deserve examination, and if it is decided to settle a standard form for use in Colonial concessions, Lord Crewe would be glad to learn the result of the discussion.
I have, &c.,
Enclosure in No. 4.
EDWIN S. MONTAGU.
Not to assign or underlet or part with the possession of the demised premises or any part thereof without the previous consent in writing of the lessor or of the Government of Bombay on his behalf and not under any circumstances whatsoever to assign underlet or part with the possession or to attempt to assign underlet or part with the possession of the demised premises or any part thereof to any person or persons who are not British subjects or to any company or association which is
not registered or incorporated in the United Kingdom or in any British Possession.
21 PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO
GENTLEMEN,
COLONIAL OFFICE to CROWN AGENTS.
Downing Street, 14 February, 1911.
I AM directed by Mr. Secretary Harcourt to acknowledge the receipt of your letter of the 3rd of December last* with reference to the policy of including in contracts and concessions granted by Colonial Governments a clause providing that such concessions shall not be held by, or assigned to, any but British subjects or limited companies British in character and control.
2. In accordance with your suggestion, it is proposed to lay the matter before the Concessions Committee at a later meeting at which a representative of your solicitors could be present. You will be informed in due course of the date.
3. In the meanwhile a copy of your letter has been sent to the India Office, War Office, and Admiralty for any observations which their experience in contracts may enable them to offer on the subject.
6195
SIR,
No. 4.
I am, &c.,
C. P. LUCAS.
INDIA OFFICE to COLONIAL OFFICE. (Received 24 February, 1911.) [Answered by No. 11.]
India Office, Whitehall, S.W., 23rd February, 1911. Ix reply to your letter of the 27th January, No. 37294/1910, I am directed by the Secretary of State for India in Council to inform you that the usual practice
Nc. 1.
↑ Clause 27 of Lake Magadi Concession, Clause 25 of the East African Estates Concession. Clanse 6 of the British Sonth Africa Company's Charter, and Section 21 of the Gold Coast Concessions Ordinance (No. 14 of 1900): see Appendix.
+ No. 2.
•
8200
No. 5.
ADMIRALTY to COLONIAL OFFICE.
(Received 14 March, 1911.)
SIR.
Admiralty, S.W., 13 March, 1911. I AM commanded by my Lords Commissioners of the Admiralty to advert to your letter of 27th January last, No. 37294, 1910, covering a copy of a letter from the Crown Agents for the Colonies in regard to the inclusion in concessions granted by Colonial Governments of a clause providing that the holders of such concessions shall be and remain British subjects or limited companies British in character and
control.
2. I am to request that you will inform Mr. Secretary Harcourt that my Lords have given careful attention to the suggestion of the Crown Agents tlmt a standard clause should be drawn which would be embodied in all concessions of Crown lands in British Colonies, and I am to state that as regards leases of oil-bearing lands, on which alone they propose to offer any observations, they are of opinion that the end in view will in the large majority of cases be fully secured if it is provided that the Chairman and the majority of the Directors shall be and remain British subjects, and that in special circumstances where it may be necessary, owing to the grant of exceptional privileges or other causes, to insist on the Company being and remaining entirely British in control, each case can he dealt with on its merits. In arriving at this conclusion my Lords were guided by the consideration that it does not appear necessary or desirable to adopt such a rigid rule as might have the effect of deterring the employment of capital in these ventures and of preventing their adequate development, and that Imperial interests would be sufficiently safe- guarded if a preponderance of British control is insisted upon.
• No. 2.