FO371-31667 — Page 111

Telephone No. : HOLBORN 4300.

DEPARTMENT

TRADING WITH THE ENEMY BRANCH

(Treasury and Board of Trade).

Your Ref.:

Telegraphic Address:

"TRADENEMY, LONDON”

Any reply should be addressed

to-

"THE CONTROLLER. 'GENERAL".

/E/387/42.

F 4211

4, KINGSWAY,

LONDON, W.C.2.

4 June, 1942.

6

JUN

1

1942

Sir,

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In reply to your letter of the 4th May F. 3200/456/107 respecting an application for financial assistance from His Majesty's Government from Mr. W.R. Walter on behalf of the Shanghai Waterworks Company, Limited, I am directed by the Board of Trade to state for the information of Mr. Secretary Eden, that they have examined the constitution of this Company which is registered in this Country, and find that the large majority of its shares are held in China mainly in Shanghai, and that the control rests with these shareholders, the only really large individual holding being that of the Shanghai Municipal Council. This control is exercised through Shanghai Directors, (including two nominated by the Shanghai unicipal Council) who control and direct the London Committee, whose powers and duties are limited to management of the affairs of the Company in London.

-

The Investment Trust Company referred to by Mr. Walter as the largest individual Shareholder in this Country would appear to be Walter Property Limited, registered in the Channel Islands, which holds 950 of the 40,000 A Shares of $20 each in this Shanghai Waterworks Company. He holds jointly with others 337 A shares.

The Board desire me to state that they can see no reason why the Shanghai Waterworks Company, or the London Committee, should receive financial help from H. M. Government. They are not aware of any similar application for any such assistance apart from those that may relate to the relief of the dependants in this Country of persons employed by somewhat similar undertakings or institutions in the Far East, a question dealt with in the second paragraph of the letter under reply.

I am to add that in the somewhat similar case of the Shanghai Electric Construction Company, Limited, who own the Shanghai Tramways

The Under-Secretary of State for Foreign Affairs,

London, S. W. 1.

/System,

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