CO129-561-6 Companies Amendment Ordinance draft bill- correspondence 18-1-1937 - 6-7-1938 — Page 73

Ne. CONFIDENTIAL.

Sir,

RECEIVED

CORE 1937

C. O. REGY

GOVERNMENT HOUSE,

HONG KONG,

18th January, 1937.

73

Treary.

BIT

00%

Sin Syechiel

vide Letter of Mr.

I have the honour to forward for consideration

prior to its introduction to Legislative Council the

accompanying draft Bill to amend further the Companies

Ordinance, 1932.

2.

The scope of the Bill is indicated as briefly

as possible in the annexed "Objects and Reasons".

As

far back as 1927 a movement arose sponsored by the

non-Chinese section of the Colony's banking interests

for stricter legislative control of the banking policy

and methods of Chinese "European-style" banks working

here. The suspension of business by the Instone

Banking Corporation in 1929, and later in 1935 by the

National Commercial and Savings Bank and the Bank of

Canton, followed by a "run" on the Bank of East Asia,

made the matter of more rigorous legislative control

of the operations of such banks a question of some

urgency, and the problems raised were referred to

N.E. Young to Mr./3071/38

R.V. Vernon dated' demi-officially in correspondence between Mr. N. E. 24th September,1935. Letter of Mr.R.V. Young, M.C., of His Majesty's Treasury, who was then Vernon to Mr.N. E., 18 Young dated 10th

18th

in the Colony, and Mr. R. V. Vernon, C.B., of the

October, 1935. 2/5 3671/Colonial Office. A Committee was appointed in

September, 1935, by Government to review the whole

question of further legislation for the control of

THE RIGHT HONOURABLE

W.G.A. ORMSBY-GORE, P.C., M.P.,

&C.,

&c.,

&C.