CO129-482 - Public Offices - 1923 — Page 435

!

opy.

:. 142 (6680/23)

(and 3 copies),

H.B.. Consulate General,

Shanghai.

Sir

433

September 12th, 1925.

With reference to your despatch lo. 53 (1890/25) of

5th April last on the subject of the fees payable by the

British American Tobacco Co. (China) Ltd., I have the honour

to submit the following observations.

The question of the annual 4 cents fee per $100 of paid-

up capital was raised by the Company in aroh, 1919, vhon &

request was made for a reduction of the fee to a reasonable

cum on the grounds that the Company was a private one and also

that it included several subsidiary companies. The Hongkong

Government held that no case had been made out for reduction

and the Company announced in their letter of December 3rd,

1919, (which was forwarded to 1.. Legation in Shanghai

despatch No. 378 of 4th December, 1919) their intention of

contesting the legality of the charge. The despatch from

the Secretary of State for the Colonies of January 11th,

1923, would appear to indicate that this intention is about

to be carried into effect.

On the question of the fairness of the fee, H.E. the

Governor maintains that, under section 7 (4) of the Companies

Ordinance (No. 31) of 1915 (as amended by section 24 of the

Ordinance of 1921) this fee is levied in lieu of the Hongkong

Bete te and Transfer duties from which China companies are

exempt.

As regards Probate and Estate duty, Sir H. De Saumarez

in/

Ronald Kacleay, X.C.H.G.,

His Majesty's Minister,

Peking.