CO129-457 - Public Offices - 1919 — Page 460

107063)

C

Sir,

Messrs. BRITISH AMERICAN TOBACCO COMPANY,

La tea

Westminster House, 450

7, Millbank, 7

London, 8.W.1.

23rd July, 1919.

We are substantially interested in several China Companies incorporated in Shanghai or transferred to Shanghai, under the Hong Kong Companies Ordinance 1915.

By Section 7 (4) of that Ordinance, China Companies (other than Hong Kong China Companies) are required to make the payment of an annual fee of 4 cents for each one hundred dollars of paid up cami tal.

We have been advised by Counsel that the payment

of this annual fee cannot be enforced.

The grounds on which we are advised that such payment cannot be enforced are that under the Letters Patent of 19th January 1888, establishing the government and

legislature of the Colony of Hong Kong, there is no power for the Colony to legislate with regard to matters outside its territory and no such power has since that date been conferred on the Hong Kong legislature. Further, the fee is expressed to be in lieu of stamp duties and probate and estate duty, which are payable in respect of Hong Kong Chine Companies, and the power to tax property outside a Colony can only be given to the Colony by express provision; further, that it is contrary to constituti onal practice to tax British subjects and Companies in foreign countries by Orders in Council.

We should be much obliged if you would make an appointment when Mr.Macnaghten, the Solicitor to the Company could call and discuss the matter with you.

Affairs,

We are, Sir,

ecretary of State for Foreign

Foreign Office,

Whitehall, 3.W.1.

Your obedient Servants, BRITISH-AMERICAN TOBACCO CULIPANY, LTD

(Signed) A.M.Rickards.

Secretary.