FO371-23517 — Page 264

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attempting to transfer its vessels to an "enemy country".

On March 29th persons professing to be the

liquidators of the Ching Kee Steam Navigation Company

appointed in virtue of the above-mentioned judgement of

the Chungking Court applied to the Supreme Court of Hong-

kong for the liquidation of the Company under the laws of

Hongkong and for the disposal of its assets existing in

that port. Consequently a hearing of the case is to be

held on May 17th.

The Ching Kee Steam Navigation Company is

engaged in coasting trade in North and Central China, and

has a paid-up capital of 5,000,000 yuan divided into a

hundred thousand shares, of which only 1,500 shares are

owned by the China Merchants Steam Navigation Company.

Some 80 percent of the shares of the Ching Kee Steam Navi-

gation Company are owned by persons residing in Kwantung

and Manchoukuo and the greater part of the remainder by

persons residing in North China, while its president

resides in Dairen, which is the centre of its business

activities. Since the time of the Russo-Japanese War the

Company has been in close connection with Japanese inter-

ests, and 19 vessels out of its whole fleet of 22 vessels,

including the six now moored at Hongkong, are chartered by

Japanese.

Consequently the proceedings at the Supreme

Court of Hongkong on May 17th are a matter of concern to

Japan. It is much open to doubt whether an organ of the

Chungking Government which has now retreated to the remote

interior of China has any authority to adjudicate on the

affairs of the Ching Kee Steam Navigation Company, which

carries on business mainly within the territories of the new Régimes of North and Central China, and of which by

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