CO129-461 - Governor Sir Stubbs - 1920 [5-7] — Page 306

103

Ietsmeð-sje InnoD.L.8.2

„OSEI,dore d‡VI,isneds

No.21/20.

.03.oit

Shanghai,

16th March, 1920.

302

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The China Companies (Amendment) Order in Council, 1919.

and

The British-American Tobacco Company (China) Limited.

I have the honour to acknowledge receipt from you of copies of the following letters:-

Mr. Kennett to yourself of the 12th instant and Mr.. Kennett to H. M. Minister of February 11th last. The facts therein referred to are, I understand, as follows:-

(a) The British-American Tobacco Co. (China) Ltd. are desirous of complying with the provisions of the new China Com- panies Order in Council, that is to say, to place the control of the China Company and its subsidiary China Companies under British management, instead of as heretofore under practically American management.

(b) That the Company have been informed by you that, as they are taking steps to comply with the new Order in Council, no hasty legal action would be instituted by you against them in view of the practical impossibility of their making all due arrangements before the coming into force, today, of Article 4

of the new Order in Council.

(c) That as a means of immediate compliance with the

provisions of Article 4, it is suggested that Sir Arthur Church-

man, a British Subject, could be appointed Chairman of the Board of the Company in China, although as a member of the Board of the English Company, he has no intention of permanently residing in China.

(d) That, as an alternative to complying with the new Order in Council as it stands, it has been suggested to H. M. Minister at Peking that an amending Order in Council might be

Sir Everard Fraser, K.C.M.G.,

H. M. Consul-General and

Registrar of Companies,

Shanghai.