CO129-557-9 British protection of companies in China 26-3-1936 - 27-2-1937 — Page 116

2.

116

down before the difficulty of defining what was

really a British company. In law, the despatch

continued, every company which was incorporated in

British law was a British entity, and the facility

which the British law thus provided for foreign ele-

ments to incorporate a British company conferred a

very great advantage on British industry generally

and it was not really desirable to restrict this

facility in order to provide a remedy for the ocC& B-

ional disadvantages that were suffered in China.

2.

In view of the final nature of the foregoing

ruling I must apologise for reverting to the subject

which is always kept prominently before the Embassy

by the constantly recurring difficulty of endeɛ vour-

ing to prevent the abuse by pseudo-British companies

of the rights accruing to British subjects and entities

by virtue of extraterritoriality.

3.

The matter was reconsidered locally with par-

ticular reference to the question whether we had not

really more control, over Chins companies at all events,

then we had imagined by virtue of the provisions of

Article 194 of the China Order-in-Council that "No

person other than a British subject resident within

the limits of this Order shall

exercise general

or substantial control of the business of a China Com-

pany" and that" Failure to comply with the provisions

/ of

: