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forming the Australian Conference,
there is a fourth, Japanese, on
the same run, a subsidised line,
which maintain Conference rates,
though working in opposition to
the Conference.
I may state that the London Con-
ference vessels never by any
possibility leave China full, but
are dependent upon the rice ports,
the Straits Settlements, and
India, for a large portion of
their cargo. The average amount
of cargo carried by these Confer-
ance steamers from Japan, Hong-
kong, and China, does not exceed
one-fifth of their carrying
capacity.
Foreign subsidised lines have undoubtedly
taken the place of British lines in some trades in connection
with this Colony. I may cite as an instance the trade between
Hongkong and Formosa. Previous to the China-Japan War, this
trade was entirely in the hands of the Douglas S. S. Company.
Since the Japanese acquired Formosa, a Japanese subsidised line,
the Osaka Shosen Kaisha, have gradually but completely driven
the former line out of the trade.
The Honourable
The Colonial Secretary.
I have etc.,
(sd.) B. R. H. Taylor,
Harbour Master, &c.