841.6463 Calcutta/1: Telegram
The Acting Secretary of State to the Ambassador in Great Britain (Dawes)
9. American and Foreign Power Company advises Department that on January 10th the Calcutta Electric Supply Corporation, Limited, of London, have called a special General Meeting of shareholders to consider among other things alterations in the Company’s articles of association calculated to secure that the control of the company shall remain in the hands of British subjects. Letter to shareholders from Ivor C. Thomas, Secretary, December 18, 1929, states:
“This is a precaution which has become of importance recently, and has been pressed upon us by the Government of Bengal. The [Page 162] provisions drafted for the purpose have the effect of restricting the holdings of foreign shareholders to a maximum of 20% of the whole share capital, and are strictly in accordance with recent precedents in the case of certain well known Companies domiciled in Great Britain and operating abroad.”
The resolutions to be voted upon contemplate a “special register” for shares held by foreigners, whether directly or through a trustee or agent and the forced transfer to British ownership of any shares held or subsequently acquired by foreigners in excess of the “authorized percentage.”
American and Foreign Power Company representative informs Department that the Chairman of the Calcutta Electric Supply Company has stated that “the Indian Government is opposed to American investments in India” as he understands it even a minority participation.
Department desires Embassy to make prompt inquiry of the appropriate British authorities, to ascertain whether the Indian Government is in fact opposed to American investments in India and to what extent the Government of Bengal, as stated in the abovementioned letter to shareholders, has recommended such action as is contemplated by the Calcutta Electric Supply Corporation. Telegraph result of investigation.