CO129-557-9 British protection of companies in China 26-3-1936 - 27-2-1937 — Page 40

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regard to private companies incorporated within the

七

British Empire. The greater part of the capital should

be owned by British subjects.

These proposals were forwarded to the Governor

of Hong Kong who saw no objection in principle. The

Attorney-General at Hong Kong furnishes a memorandum,

and a draft Order in Council which he suggests would

carry out Sir John Brenan's proposals (see enclosure to

(8) on 53680/36 Hong Kong.)

It is possible that the lack of objection in

Hong Kong is founded rather on legal than on economic

grounds, since Sir John Brenan himself admits that it

might affect adversely the receipt of fees by the Hong

Kong Government in respect of the companies affected.

The strongest objections, however, come from

Malaya (see (15) on53680/36 Hong Kong.)

There are a number of important China companies

incorporated in the Straits Settlements which carry on

business in China and whose headquarters are in the

Colony. of the greater number, and certainly of the most

important of these companies, both the Directors and

members are mainly Straits-born Chinese who are recognised

there as British subjects, though they may also be claimed

The as Chinese subjects by the Chinese Government.

present proposals would exclude such companies from

operation in China by the application of the dual nationality rule, since in fact few Straits-born Chinese have as yet been successful in obtaining denationalisation

Further, as certificates from the Chinese Government.

is

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