CO129-464 - Public Offices - 1920 — Page 560

DRAFT

SHANGHAI.

March, 1920.

548

t

Sir:-

China (Companies) Amendment Order in Council, 1919

and

The British-American Tobacco Company (China) Limited.

I have to acknowledge, with thanks, your letter of the 12th instant written on behalf of the above Company informing me of Sir Arthur Churchman's arrival in Chine, of the visit of Viscount Acheson and yourself to Peking, and of the suggestions then made to Mr. Lampson that, by a further

Companies Order in Council, H. M. Minister might be given

power to grant licences to 'China Companies' to employ non-

British Managers under special circumstances, and under

certain conditions.

While recognising the difficulties which the British

American Tobacco Company have, in view of the nature of their

business in China, in complying with the provisions of the

Order in Council of 1919, it is my duty to point out to you

that, in my opinion, any alteration permitting non-compliance

with its provisions even in the case of one China Company,

would inevitably tend to render nugatory the safeguards which

have been embodied in the new order in Council, drawn after

years of careful consideration, whereby provision has been made that Companies registered in China enjoying British recognition and protection shall in fact be there under

British management.

The Crown Advocate agrees with me in thinking that the suggested appointment of Sir Arthur Churchman as Chairman of

B. Kennett, Esq.,

British-American Tobacco Co., (China) Limited.

the

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