CO129-375 - Governor Sir Lugard - 1911 [1-2] — Page 336

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327

despatch viz: the application of Hongkong law as our Company law in China.

In the course of my conferences I found that there were those who took up the position that Hongkong was conferring a favour on British trade in China by allowing the registration of joint-stock companies in the Colony, and that consequently its Executive xxx and Courts Should continue to exercise auch superintend- -once over them as the Coloniel 1islature might think fit, and to legislate in an exceptional way for Hongkong Companies carrying on business in China. It is this type of attitude in the E Colony to- -wards British enterprise in China ta that is responsible for the wish of British merchants established in the Treaty Ports to have a registry of their own. This is not Sir F. Lugard's view, but as it is n not unlikely to be pressed I feel Bound to express a strong dissent from it. It is for the Imperial Government to apply in China by Order är in Council to British Companies trading, in China what law it choses. A Hongkong Company is at present in exactly the same position in China

as a Company incorporated in any Colony, and if by Order in Council

His Majesty may chose to give Hongkong Companies special privileges

and impose special duties upon them, he does so, not as a favour to

Hongkong, but because Companies formed for the purposes of trade in

China have been and in the future will presumably be very largely incorporated in that Colony. To its proximity alone is its selection due, unless indeed a broader principle on which Sir F. Lugard would act and in which I heartily concur is that adopted. His view is that British interests in the Far East should so far as is possible t be treated as one, and that when the Colony be legislation or other- -wise can help trade in China in it should do so. Given co-operation on such a basis as this, it seems to me that it is quite possible to

*

at a system which will disturb the existing estate of affairs as

le as possible, especially as the proposed ordinance follows close-

Compare the praxi provisions of English law.

After this memorandum was first drafted and rred in by Sir F. Lugard, the Attorney-General of the Colony put rd two propositions on which he seemed inclined to insist; as I

think