242
it was a straightforward transaction in the ordinary course of
business, and that they are entitled to every consideration and to
have their claim on the coal maintained. In China, there is no
commercial code or law requiring the registration of mortgages of
goods; it is only in respect to land that mortgages must be re-
-corded. The National Bank of China have therefore not been guilty
of jaches in not registering this mortgage in a Chinese Court.
The bank recognised kang Hua Chun only in the matter, and, re-
-garding him as a british subject, they duly complied with the
provisions of the urder in Council and registered the mortgage in
this Consulate.
50
ando per gaur and, of
The only proof advanced by the viceroy in
support of his contention that the coal is the property of Chou
Tung Shang, is the testimony of one rung Chap Ng, allas Hung Chi
Au, steward or accountant to Chou Tung Shang, who declares that
the coal belongs to Chou. But I submit that the value of this
man's statement must be largely discounted, he is a prisoner in
a Chinese Yamen; and in Courts where torture is the legalised
procedure for extracting evidence, the witness will not fall to
furnish the testimony which he believes will please his inquisi-
-tors.
31010 @
Hung Hua Chun admits that at one period he
was in partnership with Chou Tung Shang; but declares that on
Alst. Decenter, 1904, this partnership was dissolved, i under-
-stand that Chou's books are in the possession of the viceroy; but
the latter does not appear to appeal to them in any way in sup-
-port of his contentions.
As regards the question of rung hua Chun's
nationality, 1 beg to refer you to the enclosed despatch, in
which the Governor furnishes a copy of the form on which a
Certificate of Eritish Nationality was issued to rung Hua Chun on
the 5th. December, 1999. This Certificate was issued under the
old
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