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⚫ loss of time for the most accessible neutral port (not a British Colonial port) and place your ship "under the protection of the flag of the country, at once advising us, if possible, of your position "and awaiting there the receipt of further orders. In making for a Neutral port you would of "course be governed by any information you might happen to possess regarding the disposition of the enemy's vessels, but if there were no consideration of the kind to be taken into account you would simply proceed to the nearest Neutral port.
•
•
66
B
We need hardly say that the genuineness of any order or instructions received under such “circumstances would have to be most carefully considered by you, and while we should no doubt use a code if possible and endeavour to indicate in some way the bona fules of any message "sent, there might be more danger of your being deceived by a genuine message which had
been tampered with than by one which was entirely false.
We trust the occasion for acting on these orders may never arise, but you will be good “enough to secure this cirenlar in the Commander's copy of the Company's Book of Regulations "in such a way that it cannot fail in due course to come under the notice of your successor in "command.
66
The Commander, R.M.S.P. ·
That communication was quite spontaneous, and confirmed the Admiralty in their views of the probable course of events unless some inducement was held out to shipowners to keep their vessels running.
LORD ESHER said that the evidence tendered to his Sub-Committee in 1910 pointed to the same conclusion.
COLONEL SEELY said that in connection with his Sub-Committee of 1910-11 on the internal distribution of supplies he had asked the Chairman of the British Shipowners' Association and the Chairman of Lloyds what would be the course probably taken by shipowners in the event of an outbreak of war between Great Britain and another Power possessing a strong Fleet. Their replies were given in full in C.I.D. paper 151–B. Both were to the general effect that merchant-ships would seek a place of safety until either they were protected by insurance or they could be certain that their risks were negligible.
SIR JOHN JELLICOE said that he might mention that he knew privately that another large shipping firm contemplated similar measures to those outlined in the draft Circular sent to the Admiralty by the Royal Mail Steam Packet Company.
PRINCE LOUIS OF BATTENBERG said that since the Admiralty had received Sir Owen Philipp's letter, the officer charged with the arrangements for the protection of merchant-vessels had learnt in conversation that others of the large companies would take the same action but that they would not say so.
THE PRIME MINISTER said that most of these facts had been before Mr. Austen Chamberlain's Committee. Nevertheless they had rejected all proposals for national insurance.
MR. CHURCHILL said that their other ground for rejection had been that no practicable scheme had been put before them. That reason no longer existed, as Sir Hubert Llewellyn Smith had laid before his Sub-Committee a simple and practical scheme. The Admiralty did not think that it would prove altogether adequate to the need which would arise, but it marked a great advance on previous plans. It came into operation only when the rates for insurance against war risks rose above 10 per cent. All that the majority Report asked for was that the Sub-Committee should be dissolved, and a fresh Sub-Committee constituted which would not concern itself with the principle involved, but would set to work to investigate Sir Hubert Llewellyn Smith's proposals; to ascertain whether they were practicable, and, assuming that they proved so to be, to work out a scheme in complete detail.
THE PRIME MINISTER said that it would be hard to constitute a more authoritative body than Mr. Austen Chamberlain's Committee.
SIR ROBERT CHALMERS said that he might add that Mr. Austen Chamber- lain himself and Sig George Murray had both commenced the enquiry with strong prepossessions in favour of some system of national guarantee.
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