CO129-461 - Governor Sir Stubbs - 1920 [5-7] — Page 313

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No. 90.

Sir.

H. B. M. Consulate-General,

Shanghai, 23rd April, 1920.

309

On receipt of Mr. Lampson's despatch No.58 of the

25th March, I asked His Majesty's Crow Advocate and Mr. Fox for their views on the suggested Supplementary Order in Council allowing China Companies under licence from His Majesty'a Legation to secure exemption from the strict enforce-

ment of the terms of the Order of 1919.

Mr. Wilkinson has written the enclosed despatch supplementing his letter which formed enclosure No.1 in my despatch No.60 of 17th March. He agrees with me that the Order does not preclude the employment of an alien as manager of any particular business of a China Company provided such employment does not amount to general or substantial control

of the Company's business.

Mr. Fox's memorandum enclosed herewith seems to

overlook the important fact that it is not the manager but the

managing director who must be British.

Each case will stand on its own merits; and it will

be for a Court, if necessary, to decide whether the Order has

been complied with or not.

As regards the number of China Companies likely to

apply for special licences, I do not think they would be many,

for nearly every company affected by the new Order has already

complied with its provisions. The only cases where objection

has been raised and delay asked for are the British-American

Tobacco Company (China) Limited, and the Shanghai Life

Insurance Company, Limited.

Beilby Alston, Esq., C.B..

His Majesty's Minister,

Peking.

H