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Companies Proclamation and for the time being to proceed
further under the Proclamation and Regulations made there-
under rather than pass a new Ordinance which will almost
certainly require amendment before the process of registering
China Companies and converting them both in name and organi-
zation to Hong Kong Companies has been completed. If this
suggestion is adopted and the enactment of the proposed
Ordinance is postponed until such time as the Registrar of
Companies and the Law Officers of the Crown have acquired a
deeper insight into the latent difficulties, then I am advised
that it would also be preferable to defer until such time
the amendment of the Companies Ordinance, 1932, suggested by
you in your Savingram No. 193.
3.
A preliminary draft of these suggested Emergency
Registration of China Companies Regulations has been attempted
but I am advised that it is impossible to complete a draft
for enactment until certain matters of principle have been
agreed. On the questions which are raised in regard to such
matters in this despatch, I am communicating with His Majesty's
Consul-General in Shanghai and asking him to obtain the views
of the Shanghai Chamber of Commerce; I have also directed that
those China Companies which have already transferred to Hong
Kong should be asked for their views.
52.4.
1
In your Savingram No. 193, the principle of converting
the currency of China Companies is approved but the method of
change has not been prescribed, although you state that a separate
communication will be sent regarding the rate to be fixed.
It
has been brought to my attention that there is considerable
opposition to the fixing of a rate, and this opposition is
supported by the Special Sub-Committee of the General Committee
of the Shanghai British Chamber of Commerce appointed to deal
with matters pertaining to the conversion of China Companies'
capital and matters connected with their transfer to Hong Kong.
No comments yet.
Private notes are available after approval.