CO129-442 - Governor Sir May - 1917 [4-6] — Page 195

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193

(d) It is not clear what the object of the policy

is. Insurance is not a "key industry". The policy may be dictated by a natural but temporary reaction of the events of the war. 7. Proposal (e) is ambiguous in the following respects:* (a) That are "foreign" companies? If the term

includes the local Chinese commies, it is a question how far it would be fair to insist on complete accounts in English. The subject has

been considered.

(b) How are the auditors to be "properly appointed"?

(c) Is there to be a compulsory periodical audit,

or are the books only to be open to nudit on demand or on some special order by some authority?

8. The above criticisms are not hostile, but more particularity seems desirable, and the object of the policy should be explained. When these points are ascertained the subject could be reconsidered. In any onse I would suggest tha the proposels should be forwarded to the Secretary of State for consideration of the experts in the United Kingdom rather than that they should be recommended.

(sk. J. H. Kemp,

Attorney Geners).

26.4.17.

.hawora

30-