CO129-397 - Public Offices & Others - 1912 — Page 9

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their vessels in face of the doubt whether such regis-

tration would secure the limitation of liability the Board saw no objection to their being allowed to

do so;

but if the Companies decided to transfer their

vessels to another flag, they could not be prevented

from doing so. The Board added the matter could not

be finally settled in this way as the legal difficul-

ties involved could be settled only by emendment of the

Merchant Shipping Acts, and the point had therefore

been noted for legislation, when a suitable opportunity

occurred.

6. From the Shanghai Consul General's despatch,

it is clear that there are a number of bona fide

British companies carrying on business as snipowners etc. in Shanghai, and in order to find a permanent solution of the present difficulty it would be neces- sary to amend the law in such a way as to confer on such companies, so long as they remain British, the right to register their vessels under the British flag. The main difficulty is to devise (1) a satisfactory definition of "bona fide British company" and (2) satis factory machinery for ensuring that only bona fide British Companies shall be enabled to register their vessels, and that as soon as a Company loses its Brit- ish character, its ships shall be removed from the

register.