CO129-464 - Public Offices - 1920 — Page 559

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Company, Limited (as stated to you in writing), a reasonable time would be allowed them to comply with the Order before legal proceedings thereunder for non-compliance were taken. I am now however informed that this Company are in expecta- tion of some further legislation whereby a licence will be granted them, such as the British American Tobacco Company (China) Ltd., have suggested.

The steps which the Shanghai Cottan Manufacturing Com-

pany, Ltd., a Japanese controlled Company, proposes to take

in apparent compliance with the new order in Council, are

the subject of litigation instituted by British shareholders,

As, with the exception of the two companies last refer- red to, all other China Companies have, so far as I know,

taken, or are taking steps to comply with the new order in

Council as it stands, I advise that the suggestion that Sir

Arthur Churchman should be appointed Chairman of the British

American Tobacco Company (China) Ltd., should be acted on by

the Company.

I have the honour to advise that it would practically

undo all the good which has been done, and will be done by

the new Order in Council, if its provisiona as to the British management of China Companies in China were whittled

down.

I have the honour, etc,,

(Signed.)H,P. Wilkinson,

As asked, a draft letter, such as I think should be sent, to

Mr.

Kennett in reply to his of the 12th instant, is here-

with enclosed.