CO129-464 - Public Offices - 1920 — Page 558

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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 made empowering him, the Minister, to grant licences to China Companies to employ non-British Managers, under special circumstances (such as those in which the British American Tobacco Company now find themselves.)

(e) That the Company here, through the English Company, have approached the Foreign Office and also the Colonial office.

(1) That the Company here, on hearing that their proposals at Peking had not been communicated to the Registra of Companies, here, have given full information of their wishes, and intentions, to the Registrar.

I have no hesitation in advising that if, in view of the grave difficulties which the British American Tobacco Company (China) Limited have in conforming with the China (Companies)

Amendment Order in Council 1919, further amendment of our

Company Law were made, providing for non-British management

of China Companies, under licence, then, the whole object of

the Order in Council of 1919 would in great part be nullified.

As you are aware, China Companies heretofore under non-

British management, have treated the new order in Council

seriously and have, with few exceptions, already taken steps

to comply with its provisions.

The Shanghai Life Insurance Company, Limited, the shares

of which are mostly in non-British hands, have been informed that if they diligently proceed with a scheme to sell the

whole of their undertaking to the China Mutual Life Insurance

Company,