841.6463 Calcutta/3:Telegram
The Ambassador in Great Britain (Dawes) to the Secretary of State
[Received 1:50 p.m.]
16. Your 9, January 8 [9], 7 p.m. At general meeting of members of Calcutta Electric Supply Corporation held in London yesterday, considerable opposition was displayed at proposal to restrict holdings of foreign shareholders to a maximum of twenty percent of the total capital and, on a show of hands, the necessary three-quarters majority was not obtained. However, the chairman, Lord Meston, announced he held proxies to the number of 1,146,000 in favor of scheme and only 24,700 against. It is consequently certain that result of poll to be announced in a week will insure adoption of the proposal.
As regards action of the Bengal Government, chairman made following statement:
“Last year we received an [intimation] from the Bengal Government that they regarded it as essential that control of our company should remain in British or Indian hands. Should transfer of that control be contemplated, they went on to say: [‘]The local government would have to take into consideration, in consultation with the local authorities affected by the licenses and also with the Government [Page 163] of India, the question either of the compulsory purchase at the time stipulated in the licenses, or of imposing a condition in the licenses requiring financial control to be held by British or Indian interests. I am to add that the local government would welcome any action on the part of Calcutta Electric Supply Corporation, such as the amendment of the article[s] of association, which would guarantee the continuance of control of the company in British or Indian hands[’]. This is our mandate for calling this meeting today.”
I have written Foreign Office on this today. Full report will be transmitted by next pouch.31
- Despatch not printed.↩