CO129-402 - Governor Sir May - 1913 [7-8] — Page 182

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so far as circumstances admit, within the limits of this Order.

16. All fees prescribed by or under the Ordinance which are paid to the Registrar of Companies at Shanghai shall be paid by him to the Colonial Treasurer at Hong Kong.

17. Nothing in this Order shall prejudice or affect the jurisdiction of the Supreme Court over British Companies other than China Companies and Hong Kong Companies within the meaning of this Order.

18. This Order shall come into effect on

And the Right Honourable Sir Edward Grey, Baronet, K.G., one of His Majesty's Principal Secretaries of State, is to give the necessary directions herein.

[This Document is the Property of His Britannic Maiesty's Government.]

CONFIDENTIAL.

(10226.)

[20201]

Sir,

haft with merch

ur Hunt

INTERDEPARTMENTAL COMMITTEE ON THE PROTECTION OF

BRITISH COMPANIES ABROAD.

175

Foreign Office, April 29, 1913. WE have the honour to report that the illness of one of the members of the Committee and the enforced absence on sick leave of another member have compelled the Committee to adjourn its meetings until the autumn.

Though some progress has been made with the investigation of the subject referred to the Committee, it has been impossible to complete the work, and we therefore think that it will be convenient that we should submit this interim report covering a memorandum embodying the conclusions to which, as at present advised, we have been led.

Up till now we have dealt only with papers and information laid before us relating to Turkey. We are informed that the questions arising in China are as difficult and as acute as those in Turkey, and that in the former country it is complicated by the need of further measures of control over the operations of British companies. As this further question of control may entail careful investigation in China, we think it convenient that you should be in possession of our views based on the data at present before us, in order that information may be obtained as to how the recommendations embodied in our memorandum would meet the requirements of China.

We shall be in a position to pursue our investigation of the subject when such information is available.

It may also be useful to obtain the opinions of consular officers of experience in Turkey on our recommendations.

We have, &c.

C. J. B. HURST.

The Right Hon. Sir E. Grey, K.G., Bart., M P.

H. A. PAYNE.

H. FOUNTAIN.

THOS, WORTHINGTON.

&c.

&c.

&c.

INTERIM REPORT.

The committee were appointed to consider the principles which should be followed with regard to granting or withholding diplomatic protection abroad to companies incorporated in the British Empire.

In many cases, particularly in countries where Great Britain possesses extra- territorial rights, the ease with which a group of foreigners can incorporate a company in Great Britain, or in any colony which has adopted the English company law, enables local or other foreign subjects to convert their businesses into British limited liability companies and then claim, on account of the British nationality so gained by such companies, to receive protection against the local authorities and to secure the immunity from local taxation and local jurisdiction which foreign nationality affords in such countries.

It has for many years been the practice of the Foreign Office to go behind the British nationality, which incorporation in the British Empire conferred upon a company, and to grant or withhold diplomatic protection according as investigation showed that the interests which the company represented were really British (see reports of the Law Officers dated the 6th December, 1895), but no hard-and-fast line as to the principles on which such protection should be granted or withheld has ever

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