CO129-420 - Governor Sir May - 1915 [1-2] — Page 81

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The Secretary of State directed that before according

protection to any Company registered in Hongtong, His Majesty's Consular Officers should satisfy themselves "that a majority

of the shareholders as well as if the Managing Board of Direct-

ors are British subjects, and that the greater part of capital employed in the business is also British" (see Foreign Office

to Peking of October 13th 1898 and enclosures, and Peking

Confidential of 7th December 1906 and 15th February 1907).

The S.S. "Phranang", formerly under the German flag

and whose right to fly the British flag is now in question, is in the reputed ownership of the "Phranang Steamship Company,

Limited" a Company incorporated under the Hongkong Companies Ordinance, 1911. This is a company composed of aliens and

Chinese and under German control. The ship is under charter

to the Hongkong firm of Yuen Cheong, a business owned by the Chinese Compradore of Messrs. Jebsen and Company, a German firm of Hongkong with branches in the Treaty Ports of North China. The ship has been trading to the Treaty port of Hoihow (in Hainan) and has there obtained with the assistance of the local Manager of Messrs. Jebsen and Company an "Inland Waters

Certificate".

Mr. Stark-Roller in charge of His Majesty's Consulate at Kiungehow (Hoihow), doubting the right of the steamer to

fly the British flag, has been in communication with the Colonial Secretary of Hongkong and has referred the matter to

His Majesty's Minister for instructions.

Mr. Severn, the Colonial Secretary of Hongkong in his

letter of 14th September last in replying to Mr. Stark-Toller's enquiries as to the constitution of the Phranang Steamship Com-