CO129-557-9 British protection of companies in China 26-3-1936 - 27-2-1937 — Page 118

4.

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Council (namely to provide facilities for registering

bona fide British companies in Shanghai and to ensure

that such companies are British when registered and

that they so continue) was not attained by the Order

in its present form and that an amendment was required.

I replied that I shared his view that the Order was

imperfect and requested him, after consultation with

the Judge, the Crown Advocate and the Commercial Coun-

sellor, to put forward proposals for its amendment.

5.

The despatch from Shanghai (No. 430 of October

30th) of which I now have the honour to enclose a copy

is Sir John Brenan's reply to this request. It will

be seen that he does not think it worth while to tinker

with one aspect only of our difficulties, but feels

that the whole of our local company legislation needs

revision to enable us to refuse British protection

and British jurisdiction to such companies as Centro 80 –

jus (England) Limited, the Moscow Narodny Bank, the

Bata Shoe Company and the many purely Chinese businesses

incorporated in Singapore and Hongkong. He has accord-

ingly drawn up certain recommendations dealing with the

question from this point of view. These are explained

with admirable clarity in the enclosed despatch and

there can be no doubt that if they could be adopted

they would cut at the root of most of our troubles

with companies of the type to which I have referred.

6.

The essential characteristics of Sir John

/ Brenan's