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cases where real hardship or practical disabilities would ensue
from the strict enforcement of the new amending Order-in-Council
of 1919.
On the 12th March last you were informed by the Company here that the Directors of the British American Tobacco Co.,Ltd.,
London, had made representations to the Colonial Office as to the difficult position in which this company and ite subsidiary com- panies in China were placed by the new Order-in-Council.
On the 10th of March the Governor of Hongkong had tele-
graphed to you asking you to await a letter "before anything is
done against Hongkong China Companies" under the new Order-in-
Council of 1919.
No legal action had then, or has since, been taken bere
to enforce the provisions of the new Order-in-Council; such being so far unnecessary.
On March 26th Mr. Lampson, H.M.Chargé d'Affaires et Peking, wrote a despatch with reference to the appeal of the Com- pany to Sir John Jordan, as already referred to, and asking for
your opinion, and that of the Crown Advocate, and also that of Mr.
Fox, H.M.Commercial Counsellor as to the probable effect of the granting of licences such as had been suggested. A copy of my opinion as given in a despatch to yourself No.34 of the 21st April is hereto attached for reference, and for the information of His Excellency the Governor of Hongkong. When that opinion was written it was understood here that, in view of the grave difficulties which the British American Tobacco Company (China) Ltd. would have in providing for the substantial control of their interests in China being exercised by British subjects ordinarily resident in Chine, the Company were arranging for the real control of the Com- pany's activities in China being exercised in future from Hongkong,
The scheme detailed by the Company in their letters to you of April 6th and 9th, whereby its business in China and that of its subsidiary companies, such as A. Lapato & Sons, Ltd. of Harbin, should in future be really controlled from Hongkong, met with your
careful
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