CO129-587-13 Acquisition of immovable property by foreign corporations 4-7-1940 - 28-9-1940 — Page 5

NO CONFIDENTIAL.

RE

VED

54061/40

GOVERNMENT HOUSE,

HONG KONG.

4th July, 1940.

Bus-2-

Kinab

My Lord,

22 AUG 1940

C. O. Raak

I have the honour to address you regarding

the acquisition of immovable property in Hong Kong by

foreign corporations.

2.

Under section 320(1)(c) of the Companies

Ordinance, No.39 of 1932, foreign corporations may

acquire immovable property in this Colony by consent

Such consent has in the

of the Governor-in-Council.

past been given in general terms to certain loan and

mortgage companies incorporated in foreign countries,

subject to the condition that each mortgage must be

reported to the Government and that no foreclosure may

be resorted to without the special consent of the

Governor-in-Council.

Relying on such general consent

certain foreign corporations have gradually become the

owners of large blocks of immovable property in various

parts of the urban area.

3.

When a recent case came before the Executive

Council for the signification of its formal consent

as above the desire was expressed for a general

consideration of the whole question. In particular

THE RIGHT HONOURABLE

LORD LLOYD OF DOLOBRAN,

&C., &C., &C.

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