CO129-326 - Foreign Office - 1904 — Page 639

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conditions are that the majority of the share-

holders as well as the managing Board of Directors

are British subjects and the greater part of the

capital also British.

(Signed)

I am, &c.,

R. Willis.

Dear Sir:-

August 13th, 1904.

I am in receipt of your communication ad-

dressed to me, dated 4th instant, in which you ask

my opinion, from a strictly legal point of view, as

to the right of Chinese owned Launches plying on

Chinese Inland Waters to fly the British Flag by

reason of the owners being a Company registered in

HongKong and renting an Office in that Colony.

If the owners of the Launches have incor-

porated themselves as a British Company under the

Company's Ordinances of HongKong, then such launches

are owned by a British Company, and cannot be said.

to be Chinese owned although the shareholders in

such Company are Chinese.

When in your said communication you in-

I pre-

form me you refused to register the Company,

sume you mean you refused to register the launches

as British.

The Merchant Shipping Act 1894 provides

that a ship shall not be deemed to be a British ship

unless