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versal ymizma¬
No.119.
83
H. B. M. Consulate-General,
Shanghai, 4th June, 1920.
713
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Laingo slemigaR TIP
ΤΑ ΑΠ' ΑΠΟΥ
sir,
I have the honour to acknowledge the receipt of your despatch No.96 (3962/20) of the 27th May, forwarding copy of a despatch from the Governor of Hongkong and inviting my observa- tions on the specific points raised by Sir R. Stubbs in regard to the China (Companies) Amendment Order-in-Council, 1919.
On receipt from the Governor on 29th April of copy His Excellency's same despatch I invited His Majesty's Crow Advocate, as legal adviser in company matters, to report on the points raised in that despatch. of Mr. Wilkinson's report I have the honour to forward copy.
His Majesty's Crown Advocate, with whose opinion I am in complete agreement, has dealt so fully with the Governor's contentions that further lengthy argument is not needed.
Sir R. Stubbs does not appear to be aware of the glaring scandal of 'British companies' registered in the Colony but functioning entirely beyond its limits which the Order-in- Council of 1915 was designed to check,
Such companies, which need have neither capital nor directors nor employees British, masqueraded as British on the strength of the payment of fees to the Colony and the exhibition of a name board outside some Hongkong lawyer's office which thus became the registered office required by the Ordinance applicable. The case of the Belgian Industrial Bank of China, Limited, finally proved how the system jeopardised our good name in China without any British Court being able to deal with the aliens constituting in fact a company held out as British to the Chinese.
The proper steps to be taken were discussed very fully not only at the conference to which the Crown Advocate refers,
ir Beilby F. Alston, K.C.M.G., C.B.,
His Majesty's Minister,
Peking.
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