CO129-401 - Governor Sir May - 1913 [5-6] — Page 426

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OP Y.

Enclosure 1.

St. George's Building, 13

C.O

24315

417

JUL

Sir,

Hongkong, 27th. May, 1913.

I have the honour to acknowledge the receipt of

your letter of 5th. instant inviting an expression of opinion from the British Members of my Committee regarding the registry of ships owned by Companies registered at Hongkong but having their princi- -pal place of business in a Treaty Port of China.

My Committee have given this subject their con- -sideration, and they are of opinion that it is very desirable that Hongkong Registered Companies should be enabled to own ships trading at the Treaty Porta capable of being registered under the British Flag, without the risk of their registry being declared illegal, and they further consider that it should be a sufficient guarantee of

British ownership if the majority of the Directors of such Companies

are of British nationality, and consequently amenable to British

law at any of the Treaty Ports.

The question of a majority of the Shareholders being

of British nationality was also discussed, and it was decided this

was of no practical value, and not a desirable innovation in view

of the difficulty arising from the fact that shares are daily

changing hands, and that I if insisted on it would only lead to the

nominal ownership of the shares remaining in British names possibility of less native financial interests being entrusted for investment in British Companies.

Į

or the

I am directed to express the thanks of my Committee

to His Excellency the Governor for allowing the correspondence on

the matter to be reviewed by them.

The Honourable

The Colonial Secretary.

I have etc.,

(sd.) A. R. Lowe,

Acting Secretary.

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