CO129-461 - Governor Sir Stubbs - 1920 [5-7] — Page 293

CO129 Colonial Office Hong Kong Records 理藩院香港檔案 All

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289

territorial control here may be quite satisfactory.

11. Another class of company which may give rise to

difficulty is illustrated by the case of the Kwongtung Tramways

Company Limited which carries on a tramway undertaking at

Canton. Here the desirability of relying on the territorial

jurisdiction in Hongkong, and the personal jurisdiction ensured

by the 1915 Order, is perhaps reinforced by the consideration of the inconvenience of requiring such a company to be placed

on the Shanghai register. There is also the possibility that

Chinese law might at some future time require the local manager

of such a public utility company in China to be Chinese, even though the company might be mainly British in charecter.

12.

The latter difficulty is perhaps more likely to

become acute in the case of future companies formed to develop

mineral resources in China,

13.

Another class of case is illustrated by the case

of the British-American Tobacco (China) Limited, which is not

Chinese at all but which is partly British in character. The manager of this company is a citizen of the United States of

America, and I understand that the company find it difficult,

if not impossible, to displace or replace him.

14.

The restrictions imposed by the China (Companies)

Orders-in-Council apply only to companies formed under the

Companies Ordinances of Hongkong. No such restrictions apply to companies registered in the United Kingdom or Straits Settlements or any other part of His Majesty's dominions. In

the interests of bona fide Hongkong enterprises, as some of

the companies affected appear to be, it seems desirable not to

make this discrimination unduly stringent.

15.

The possible broad effect of the new Order must also be considered. It may be that it will drive a number of companies off our register altogether. Some may become Chinese companies and others may become United States companies. I doubt if this is desirable, though probably it would be no harm

if

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