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payable in the United Kingdom or in Shanghai as may be thought best on further enquiry. Query: Could this be done by Order in Council? 331
Provisions should appear in the Order in Council as to inter alia the number of directors which should be Bri- -tish, and as to the auditors being British in the case of Companies carrying on business in China.
There is only one further point which I need mention at present; it is that any amendments to the Colonial Ordi-
-nance to become binding in China should have the prior sanction of
the Secretary of State for Foreign Affairs. The Order in Council might enforce all future amendments subject to this sanction. This suggest-
ion was made by Sir F. Lugard.
No doubt certain fees and fines would be levi-
-able in China under the Hongkong Law. I nave desired to keep clear of
this question altogether. My object is to create a system which will
assist British trade in China while keeping a proper control over the
Companies professing to be British which may be engaged in it. The
financial part of the scheme should not be incapable of adjustment.
(Sd.) H. W. de Sausmarez.
Shanghai, 20th. January, 1911.
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