CO129-613-4 Transfer of registration of China Companies from the United Kingdom to Hong Kong 16-4-1946 - 3-2-1948 — Page 121

Sir,

Copy

124

China Association,

31-37, Broad Street House,

old Broad Street,

London, E.C.2.

19th March, 1947.

Hong Kong Refugee Companies

I have the honour to call attention to the statement made by the Chancellor of the Exchequer in the House of Commons on February 4th in reply to a question by Mr. Scott Elliott, in the course of which Mr. Dalton stated that he had decided that the concession set out in sub-paragraphs (iii) and (iv) on Page 3 of the White Paper (Cmd. 6559 of 1944) in favour of refugees (individuals and companies) would be withdrawn as from the end of the current financial year.

This Association has a number of Member Firms who are concerned in this matter in respect of companies previously registered under the Hong Kong Companies Ordinance, and now temporarily registered as Refugee Companies in the United Kingdom. These Hong Kong Companies have been anxious to revert to Hong Kong registration for some time, but they have been unable to do so as there is no Companies Ordinance now in force in that Colony, although it is understood that a new one is in course of preparation and has, in fact, been received by the Colonial Office in draft form from the Hong Kong Government.

These Companies have anticipated and it would seem with some justification - that they would not be made subject to income tax in the U.K. until such time as it was at least practicable for them to return their registration to Hong Kong, and they have been supported in this view by the provisions of S.R. & 0. No. 1533 of 1945, to the effect that the Board of Trade may direct that a company shall cease to be registered as a refugee company if provision is made under the law of the

It would country of origin for registration in that country.

seem to be implicit in this provision that, until such time as the Board of Trade was in a position to act, the companies would be allowed to continue to enjoy the privileges of refugee companies.

It seems possible that the statement made by the Chancellor of the Exchequer in the House of Commons was a general one on the assumption that it is now possible for refugee companies, as a rule, to revert to their countries of origin, and it is probable that in the great majority of cases that is so, but Hong Kong is an exception, and I have the honour to request that the matter be investigated with a view to refugee companies from Hong Kong being excluded from the general ruling implied by Mr. Dalton's statement until such time as they are able to transfer their registration back to Hong Kong.

I have the honour to be, Sir,

Your obedient Servant,

(signed) G.E. Mitchell,

Secretary & Joint-Chairman.

The Secretary, The Treasury, Treasury Chambers,

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