CO129-587-16 Union Insurance Company of Canton- proposed emergency transfer from Hong Kong in case of enemy... 8-10-1940 - 17-11-1940 — Page 2

صحنه

Gray

Tel

Англий

274-

Lord

Mr. Caine and I had a visit yesterday from Balfour of Burleigh and Mr. H.C. Gray on behalf of the Union Insurance Company of Canton, a very substantial British insurance firm with headquarters in Hong Kong. The Company is registered under the Hong Kong Companies Ordinance, and the Directors, who have been considering the possible contingency of having to transfer the Company elsewhere in the event of war with Japan, have been advised that this could not be done without a special Colony Ordinance. Any precaution, therefore, for the purpose would have to be taken in good time before the emergency occurred. Their business extends all over the East, and clearly if the Japanese occupied Hong Kong, the headquarters management of the Company would be crippled.

They explained to us that they had no desire to remove the Company from Hong Kong unless the Colony fell into enemy occupation and then only for the period of such occupation. They would have no objection to

a requirement that transfer should not take place except with the Governor's approval at the time, and then only for such period as the Governor should stipulate. They quite appreciated that we should have to get the advice of the Hong Kong Government.

I now attach a copy of the Hong Kong Companies Ordinance, and I expect that the Company has been advised that it is not possible by special resolution to alter the provisions of its memorandum under Section 7(1) of the Ordinance for the particular purpose of transferring its headquarters from Hong Kong (and presumably China) in an emergency. I do not know whether you would consider that prima facie the Company's memorandum could be altered to give the Directors an emergency power to transfer the Company's headquarters to other British territory temporarily, subject to the Governor's consent at any time.

Subject to your advi we should put to the 0.A.G. by telegraph LordBalfour's enquiry in the most simple form which we can manage, and leave him to develop in his reply the legal or other difficulties which may exist.

SWMENT

3.10.40.

I think this is a matter to be settled

by the Attorney General in consultation with the local representatives of the Company, at least in the first place. There are, however, two points which have occurred to me:-

(1) other Companies may want to do the same thing,

and

(2) if the amendment of the law makes its object at all clear it will furnish unfortunate ammunition for anti-British propaganda, for Kavaan, it would no doubt be interpreted as a sign that British business, and even the Government, was preparing to leave Hong Kong in anticipation of occupation of the island by Japan, or even Germany and Italy!

I agree that the difficulty is probably that mentioned in Mr.Gent's minute, and, if so, I

suggest