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6.
for this occasion only, and on the understanding
that a precedent was not considered to have been
thereby established, I was prepared to forego the
British claim to two vacancies. After a certain
amount of discussion and delay, the Netherlands and
German Consuls-General waived any claim which their nationals might have had to the third vacancy, and the
Consular Body agreed that all three vacancies should be
filled by Japanese. The majority of the Consular Body,
including myself, made their consent conditional on
future vacancies being filled in accordance with the
quota system, but, in view of the reservation made by
his predecessor in 1936, the Japanese Consul-General was
unwilling to agree to this stipulation, and would not go
further than to express the opinion that the manner in
which future vacancies should be filled "should be
decided upon according to the circumstances at that
time." In the same letter, Mr. Hidaka renewed his
assurance that, on the appointment of Japanese candidates to the three vacancies, the Japanese shipping companies would not fail to pay the exchange compensation on the
pilotage tariff, including the amount in arrears.
10.
The present position, therefore, is that three
Japanese apprentice pilots have been appointed, and the
purchase money for their shares in the Shanghai Pilot
Boat Company has been guaranteed by the Yokohama Specie
Bank. As regards the payment of exchange compensation,
however,/
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