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It may be that, in view of the terms of the Treaty of Peace Orders as to the effect of the Custodian's certificate, the risk of giving an indemnity to the Corporation would be small, but some risk would be incurred, and I am not prepared to give one without instructions from you, especially as in this matter the Hongkong Custodian is practically acting on behalf of the Imperial Goverment.
Apparently the simplest solution would be to give, by Order in Council, to the Custodian of Enemy Property in Chine power to give such a certificate as can be given by the Custodians here and in the United Kingdom. Without this certificate, even if the Corporation were compelled by His Britannic Majesty's Supreme Court for China to enter the Custodian at Shanghai as owner, neither the Corporation nor the Custodian would be protected from a claim to damages if it should hereafter be held that any share dealt with was not in fact subject to the charge. The chief objection to the solution suggested in this paragraph is perhaps the fact that in the application of the charge created by the China (Treaty of Peace) Order in Council, 1919, priority is given to the claims of British nationals resident or carrying on business in China.
9.
In view of the interest of the Imperial Government in the matter, I shall be glad of instructions
as to how I am to proceed.
I have the honour to be,
Sir,
Your most obedient humble servent,
7. L. Stubbs,
Governor, &c.
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