CO129-461 - Governor Sir Stubbs - 1920 [5-7] — Page 294

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230

if we got rid of some companies which have no real connection

with either British territory or British nationality. This

latter remark does not apply to companies like the Sincere

Company Limited and the British-American Tobacco Company (China)

Limited, and even in the case of some purely Chinese companies

it might be just as well to have them on our register. For example, a shipping company which was driven off our register would transfer all its ships to a foreign flag.

16.

I admitthat it is difficult to reopen so soon

the question of the soundness of legislation which has just

been enacted, and the public appearance of so sudden a volte

face cannot be disregarded entirely, but in the absence of any

clear evidence of necessity for the new provisions referred to

I venture to suggest that their usefulness is outweighed by

their drawbacks.

17.

It may be that a way might be found out of the

difficulty by taking power for the issue of licences by you

exempting approved companies from the operation of particular

articles of the China (Companies) Orders-in-Council. If this

proposal were adopted the discretion of course would be yours,

but I feel sure that you would be prepared before-hand to

discuss generally its application to bona fide Hongkong enter-

prises.

18.

I shall be much obliged for Your Excellency's

views on the subject, and I would again suggest that no action

should be taken under Articles 3 or 4 of the 1919 Order until

the matter has been fully discussed between all the authorities

concerned or interested,

I have, etc.

Sd.

R. E. STUBBS,

Governor,&c.