CO129-557-9 British protection of companies in China 26-3-1936 - 27-2-1937 — Page 150

1.

COPY

Translation. G.V.C. 14/10/35.

MEMORANDUM

From

Wai Chiao Pu

to

H.M. Ambassador.

Nanking.

150 Ench (10)

9th October, 1935.

(received 14th October, 1935).

The Ministry of Foreign Affairs present

their compliments to His Majesty's Embassy and have

the honour to state that they have received the

following communication from the Ministry of Finance:-

"When it is intended to establish a bank in

China, it is necessary to make an application to this

Ministry, in accordance with law, for an investigation

of the bank's capital, for registration and for the

issue of a licence, before business can be carried on.

The bulk of the business of banks which have their head

offices abroad and branches in China in the treaty-norts

and concessions is transacted with Chinese, notwith-

standing the fact that the banks are registered abroad,

and since foreign firms are relatively but little

concerned in the affairs of the banks' head or branch

offices, it is possible that as the banks are under

foreign jurisdiction, full consideration has not been

given to such questions as the actual figure of the

authorized capital, whether it has or has not all been

paid up, and the true state of affairs as regards assets

and liabilities, while the Chinese Government for its

part is at a loss for means of ascertaining (these facts)

and, likewise, for means of enforcing any supervision.

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