CO129-350 - Public Offices - 1908 — Page 295

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proceedings in the Shanghai Court to compel the Gas Com-

pany to recognise the Hong Kong Probate".

We were of course quite aware that our Clients are

at liberty to adopt such a course, but with all defer-

ence we are certainly not inclined to advise them to

embark on protracted and expensive litigation on such

an uncertain question. From the information obtained

by Sir Edward Grey and contained in the letter from

the Foreign Office, it must be quite clear to him that

the general question involved is from the point of view

of the officials of Companies in Shanghai and the

Revenue Authorities there a very important one and

that in all probability even if our Clients were success-

ful in a Court of first instance an Appeal would pro-

bably result which might be taken to the Privy Council

before the matter was finally decided.

In the present instance as you are aware our Clients

were bound to realise the assets with as little delay

as possible and in taking out a grant in Hong Kong in

respect of other assets they were advised by the

Solicitors representing us and also by Mr. Sharp, K.C.

of Hong Kong that duty was properly payable in Hong Kong

in respect of the Shanghal Gas Company Shares upon

the ground that the registered office of the Company

was situate in Hong Kong. Then when our Clients ap-

plied to have the Shanghai Gas Company shares regis-

they tered in their names in order to realise them,

were informed by the officials of that Company that

they could not recognise the Hong Kong grant and we

were therefore bound to pay the duty to avoid waste

of time.

The point thet we wish brought to Sir Edward

Grey's notice is that both in Hong Kong, a British

Colony, and in Shanghai, a Treaty Port, duty has been

claimed by officials who are responsible to the Home

Government. It is grossly unjust that such a state

of things should be permitted to exist, and we care

not whether the duty is refunded as Hong Kong duty

or Shanghai duty, but we submit that the Treasury are

morally bound to decide which duty is properly pay-

able and to see that one or other of the duties is

refunded.

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