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arranged with the Master that they should temporarily return to the Ship. This appears to me to have been a mistake and no doubt gave rise to the statement made to you by the Owners that they had received a telegram to the effect that the Hongkong Government insisted on the men returning on the Inkum instead of being repatriated as distressed British subjects. I annex copies of the actual telegram that was sent and of the reply that was received by the Agents here of which they were good enough to furnish me with the contents.

5. On receipt on the 7th. of your telegram of the 6th. instant, I interviewed the Harbour Master, the Master of the Inkum (Captain E. S. Pearse) and a representative of the Agents (now Messrs. Gibb, Livingston & Co.) and we came to the following arrangements.

(1.) The men to be put back in the Sailors' Home and be kept there until they can be sent to England as Distressed British Seamen, or, in view of the length of time possibly two months that might elapse before this is possible and the consequent expenditure on their maintenance that would be involved, until the Harbour Master can obtain favourable terms for shipping them as passengers.

(2.) The Agents to pay the men's wages up to the date of their refusal to go to Japan (July 18th.) and to pay under protest for their maintenance in the Sailors' Home pending embarkation.

(3.) The expenses of sending home to be paid by the Agents at Board of Trade rate under protest pending subsequent adjustment.

(4.) The men not to be called upon to sign off their

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