CO129-557-9 British protection of companies in China 26-3-1936 - 27-2-1937 — Page 89

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He therefore desires to replace Article 194 by something

which will spread the net more widely.

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5. He also suggests that, in cases of persons of Chinese

race who claim to be British subjects, the rule of dual

nationality should be strictly enforced so that in the case

of companies carrying on business in China only those Chinese

who have received denationalisation certificates from the

Chinese Government should be accepted as British Subjects.

6.

So far as this Colony is concerned there does not

seem to be any substantial objection to the proposals in

principle, but it would seem desirable that the Colony should

be consulted before the final form of any amending Order in

Council is settled.

Consequently,

7. Pending consideration of the principles involved Sir

John Brenan did not submit with his despatch any draft of

his proposed legislation and it is difficult, when once the

general principle is agreed, to discuss details until at

least a foundation for discussion of the details has been

laid in the form of a preliminary draft.

although the preparation of such a draft concerns the Foreign

Office Advisers rather than those of the Colonial Government,

a preliminary draft of an amending Order in Council, illus-

trating the Hong Kong conception of the proposals has been

prepared and is attached to this memorandum.

8. The preamble and Articles 1 and 2 of the draft Order

in Council follow the form of the preamble and Articles 1

and 2 of the China (Registration Fees Amendment) Order in

Council, 1933.

9. Article 3 of the draft repeals Article 194 of the

China Order in Council, 1925, subject to a saving which is

referred to in paragraph 14 of this memorandum, and replaces

it by an Article generally on the lines of Article 200.

10. The new draft Article 194(1) follows the lines of

Article 200(1) and provides that no British Company shall