CO129-557-9 British protection of companies in China 26-3-1936 - 27-2-1937 — Page 4

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The proposals as regards the companies

formed by Chinese British subjects, i.e. those

persons of Chinese race who claim British citizenship

from alleged birth in Hong Kong or Malaya, are

extremely important in relation to the negotiations

at present in progress as regards the granting of

Denaturalisation Certificates by the Central Govern-

ment, as it is recommended that there should be a

strict application of the dual nationality rule.

Only those Chinese should be accepted as British

subjects for these purposes who have received

Denaturalisation Certificates from the Chinese

Government.

Considerable difficulty has already

been experienced, particularly in Malaya, in this

matter of extracting Dena tunalisation Certificates,

and the promulgation of provisions on the lines of

here fccposed

those principles cannot be expected to decrease the

Chinese unwillingness to meet us in this matter.

In a despatch dated the 13th December last, the

Governor of Hong Kong stated that he had no objec-

tions in principle to the present proposals, and it

is to be assumed that his despatch of the 7th

February was written with the possible effects of

these proposals in mind. But whatever the reactions

in Hong Kong - and it is anticipated that the

financial loss to Hong Kong may be considerable,

owing to loss of registration fees the effects in Malaya may be still more marked, and I do not think

that discussions could usefully take place on this

matter until some decision is reached as regards the

Denatumalisation question.

? Reply that the Secretary of State agrees

that the subjects arising out of the correspondence

enclosed