CO129-468 - Governor Sir Stubbs - 1921 [6-8] — Page 129

to be entered as owner of the shares.

practicel difficulties in this course.

128

There are, however,

The Supreme Court

of Hongkong might feel a very natural reluctance to overrule

a decision of a previous Chief Justice which has held the field for 20 years. In the event of a decision here adverse to the Hongkong Custodian, the next step would be for the Custodian at Shanghai to move. The Corporation would probably raise a similar objection there, and the Custodian at Shanghai would then have to move His Britannic Majesty's Supreme Court for China for a declaration in his favour. That Court, being free from any embarrassment due to previous decision, might hold that the shares are locally situate in Hongkong. In that event it would be necessary to appeal frm

All this would involve both decisions to the Privy Council.

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expense and delay.

6. I have assumed in the preceding paragraph that the point to be submitted to the Court would be the local situation of the shares. I am advised that, while the situs of the shares is doubtful, the certificate of the Hongkong Custodian would probably be sufficient protection to the Corporation, and that it would also probably protect the Custodian from any claim except a claim to recover the shares or their proceeds if sold. If the Custodian could satisfy the Supreme Court of Hongkong that the certificate has the above effect the Corporation would be obliged to enter the Custodian as owner, This, however, would not conclude the matter from the point of view of the Imperial Government, to whom no doubt the proceeds of the shares will eventually be paid if they are sold, because if it should hereafter be held that the situs of the shares was in China the Custodian here would have to restore them or their proceeds. If the Hongkong Custodian had sold the shares it

would no longer be possible for the Custodian at Shanghai to deal with them.