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8.
accommodating attitude which the British authorities
adopted in this regard.
12.
I do not suggest, however, that the question
of the Shanghai Pilotage Service may now be considered
to have been finally settled. As I stated in paragraph
7 of my despatch No. 339, it is rumoured that, before
long, the Reformed Government will attempt to gain
control of the Filots' Association, and these rumours are
substantiated to a certain extent by the report contained
in Chungking telegram No. 166 to Your Excellency
(paragraph 4). It is unfortunate, also, that another
two vacancies have occurred in the association, and that
the question of filling them has again risen. The
Manager informs me that they have every hope of re-
cruiting a Briton and a Netherlander, who would be able
to buy their shares with the assistance of one of the
local banks, but, while the Japanese have not yet made
any move in the matter, some further approach from them
may certainly be apprehended. I have arranged for this
office to be kept informed, and I shall have the honour
to report developments to Your Excellency in due course.
13.
I have one further item of interest to report
in connection with the affairs of the Shanghai Licensed
Filots' Association before I conclude this somewhat
lengthy despatch. as Your Excellency is doubtless
aware, the gold unit, although it is still maintained
by the Customs at a nominal rate for duty purposes, has
practically disappeared from the market, with the
result that, as the capital of the Shanghai Pilot Boat
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