Y
45
8.
-3-
Article 10(2) Security for Costs.
This
topic is dealt with in Hong Kong by Section 363 of the Code of Civil Procedure (Ordinance No.3 of 1901). That provision reproduces the usual power to require in the discretion of the Court security for costs from a plaintiff who ordinarly resides out of the jurisdiction. Article 10(2) is therefore acceptable if it can be assured that Chinese law will be similar to Section 363 of the Code of Civil Procedura and will be applied reasonably so as not to demand such security for costs from a plaintiff not ordin- arily resident in China as to make it impraticable for him to take proceedings in the Courts of China.
9.
Article 11(1)(a) and (b) These provisions are urobjectionable on the face of the, but it would be possible for China to keep within the Treaty and yet to enact onerous laws regarding taxation of and other require- ments or Companies in a discriminatory manner, e.., by non-enforcement against nationals. I cannot, however, Bug est how such a contingency could be guarded against in the Treaty, which must pre-suppose that in enforcement respectively of their lows the contracting parties will not in practise discriminate between their own nationals aud Foreigners.
10.
Article 11 (1) (0) and 11 (2) It would appear that the Chinese Government is not in point of fact, trying to oust Imperial reference but is merely seeking the normal reciprocity of treatment accorded to foreign nationals. Nevertheless as it et uds it looks as if the Chinese are seeking more than most favoured nation treat- ment and are actually claiming all the preferences accorded to Empire producers. If this is really their intention the clause aust be worded differently in order to permit Imperial Preference to continue. It may howover be noted that according to the Chinese argument ritish products might be permitted to enter China duty free, because similar duties are not levied on home produced Chinese manufactures.
11.
Article 14. It is noted that the person to
be named in en application for permission to enter and reside need not be a national of the High Contracting Party. As the permission can only be refused in the three limited cases specified in para.(3), Chinese business could introduce nou- Chinese persons who were not even Chinese nationals. This would certainly be embarrassing.
12.
There is one matter which is not dealt with in either the British or the Chinese draft, and which, I venture to suggeзt, might be included if the Treaty is to be termed one of Friendship or Amity. This is a stipula- tion that neither of the High Contracting Parties should in the territory of the other indulge in propaganda directed against the Government or form of administration. provision of this nature might be a deterrent in the oase of Kuomintang propaganda in the Colony.
A
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