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actually for the account of the Government, and what were known as Blue Book rates were to be the basis of remuneration. The Government confidently looked to the owners to conduct the business with as much zeal and care as if their own interests alone were still involved.
The scheme included all lines operating between Hongkong and the United King- dom and all the ocean going ships belonging to the Indo-China and China Navigation Companies, but it did not apply to the smaller lines operating in and out of Hongkong along the China Coast.
The Indo-China and China Navigation Companies' ships were requisitioned under this scheme in the early summer of 1917, and they were run under it on Far Eastern trades by their owners on behalf of the Imperial Government until the end of the war: with the exception that such of their vessels as could possibly be spared were taken as occasion required for the direct use of the Imperial Government, and towards the latter part of the war only a small portion of each Company's fleet remained upon the Coast.
The remuneration payable to these Companies was at Blue Book rates with eastern allowance, and it was converted into dollars, at first as to one third, and later as to one half, at 2/-, and as to the balance at the rate of the day.
2. The taking of vessels from Far Eastern trades for the use of the Imperial Government, on full requisition as distinct from Liner requisition, had been going on since the commencement of the war, and by the beginning of the year 1917 the number of British vessels trading to Hongkong was very materially diminished. The situation was carefully watched at home, and on the 14th April, 1917, the Admiralty telegraphed that, while it was imperative that every possible ship should be used to relieve the home tonnage position, the Admiral, in requisitioning vessels, was to consider any requirements of the Colony which were absolutely vital, and he was authorised to requisition at the request of the local Government small British tonnage necessary to meet its requirements.
3. In May, 1917, a Committee was appointed by the Government "to consider what are the vital requirements of the Colony and what British tonnage is necessary to meet such requirements". The original members of the Committee were:
Hon. Mr. C. E. Anton Commauder Beckwith, R.N.
Mr. S. H. Dodwell
Mr. G. T. Edkins
Messrs. Jardine, Matheson & Co., Ltil.
.....Harbour Master.
..Messrs. Dodwell & Co.
.Messrs. Butterfield & Swire.
Hon. Mr. Lau Chi-pak
Hon. Mr. R. Shewan
.Cheong Yue Steamship Co., Ltd.
Messrs. Shewan Tomes & Co.
Fleet Paymaster W. D. Sirratt, R.N.
This Committee, with which the Government was in constant touch until the end of the war, did most valuable work on behalf of the Colony.
4. In a telegramı dated the 5th July, 1917, the Hongkong Government was informed that the Shipping Controller had appointed Mr. G. K. Nuttall of Messrs. Butterfield & Swire, and Mr. R. Sutherland of Messrs. Jardine, Matheson & Co., Ltd., as a sub-com- mittee to represent him in the Colony.
5. In a preliminary report on the local situation, dated the 4th July, 1917, Sir Henry May wrote to the Secretary of State for the Colonies:-
"
"I need hardly emphasize the point that the Commercial Community of this Colony is anxious to assist His Majesty's Government in every possible way. Their views on the subject of the phrase "vital requirements
are, I think, in the special circumstances of this peculiarly situated Colony, sound, and they are content to leave the question of requisitioning in the hands of the Controller of Shipping in London, who has the benefit of the advice of a representative Shipping Committee."