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Assuming at it is decided that the Shanghai Court already possesses cr (if it does not) can be given by a new Order in Council the necessary jurisdiction, I am adverse from applying the Hong Kong Bill when passed to China mutatis mutandis by Order in Council since, if the whole Ordinance including the provisions as to registration were so applied, it would mern the adoption of alterna- tive (1) - the institution of a Shanghai register, and if alternative (2) is to be adopted I think that the exact powers of the Shanghai Court should be set out expressly in the Order in Council.
I have, therefore, suggested to Mr. Rees "avies that alternative (2) might be carried out by a China Order in Council on the lines of Part IX of the New Zealand Act 26 of 1908, regulating the position of companies registered in Hong Kong but carrying on business in Shanghai, and giving the Shanghai Court power to wind them up as "foreign Companies".
He seemed to think that a compromise might be reached with Sir H.De Semerez and the Foreign Office on these lines but promised to send in his observa- tions on the subject in a few days.
(Td) J.S.R.
18/7.
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