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But they do think, in view of the most complex and conflicting interests of which those Imperial needs are compounded, that it is their duty to present every possible aspect of the situation as it affects Far Eastern trade for the consideration of those high authorities with whom the ultimate decision rests."
9. Colonel Thomson arrived in the Colony early in 1918, and, after he had personally consulted representatives of the various shipping interests, the situation was discussed on the 18th January with the Vital Requirements Committee, the Governor and the Commodore being present at the meeting. An entirely satisfactory settlement of outstanding questions was arrived at, and it was arranged that, before any further vessels were taken on full requisition, the Vital Requirements Committee would be informed fully of the situation and its advice would be invited. Throughout the remain- ing period of the war the arrangements for the taking of further vessels on full requisi- tion worked smoothly and without friction.
10. The time at Colonel Thomson's disposal was too brief to enable him to inaugu- rate the scheme for the local control of shipping, referred to in paragraph 6 of this Report, but details were discussed and a Shipping Control Committee was appointed for the purpose of getting the scheme into working order and of carrying it on, the members being Mr. R. Sutherland, Mr. G. M. Young, and Mr. A. G M. Fletcher (Chairman) with Mr. F. W. Cary, Expense Accounts Officer of His Majesty's Naval Yard, as Secretary. Mr. Sutherland and Mr. Young sat upon the Committee in their capacity as Shipping Controller's Representatives, Mr. Young having previously taken the place of Mr. Nuttall.
11. The local Control Scheme was prepared, and was subsequently operated, in accordance with definite instructions from the Shipping Controller in London, to the following effect:-
All tonnage available was to be utilized in the most economical way and any surplus tonnage must be diverted to meet more pressing needs. To this end all hitherto unrequisitioned sea-going vessels trading in the Far East were to be requisitioned and were to be placed under the control of Colonel Thomson, as Agent for the Shipping Controller, who would constantly and carefully watch the situation in the interests of the different sections of the Indian and Far Eastern trades, so that tonnage might at any time be removed from one service to another which might at the time be relatively more important from the point of view of Imperial interests.
The Liner Requisition Scheme was to be taken as a model. The vessels were to be left as far as possible to the owners to run as if for themselves, though actually for the account of the Indian or Colonial Governments, and the balance of profit, if any, was to be payable to the Governments of India, the Straits Settlements, and Hongkong. The owners would be paid at Blue Book rates and could not therefore urge any financial considerations against the transfer of any of their vessels from trade to trade, and the way would be left open for Colonel Thomson to make such adjustments of the carrying tonnage in the various trades concerned as would secure the most economical use of the ships available. The adoption of the scheme would also obviate any grievance arising from the fact that certain Liner Compa- nies which happened to be registered in the United Kingdom were already fully controlled both financially and administratively while certain other Companies domiciled in India and the Far East enjoyed freedom from such control.
The situation was thus described in an action brought against the Shipping Con- troller in 1917 :-
"It had become necessary in order to secure the most effective use of available tonnage that all liner tonnage should be made equally available for any employment, and that there should be identity of interest and equality of reward between all lines, together with unity of control and wide common employment, with unrestricted freedom of disposition adapting supply to demand".