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steamers, but that a gain, though proportionately small, to the revenue would result by imposing a fee of so much per ton on the French steamers which call at the hulk. As these steamers send no cargo over the Bund, they, though subsidized by the French Government and competing with non-subsidized British lines, would have the free use, in so far as the Concession is concerned, of the Japanese frontage unless some charge of this kind is made. On the other haud, Messrs. Jardine, Matheson, and Co. and Butterfield and Swire regard their access under any conditions as prejudicial to their interests, since steamers having access take from them cargo and passengers who In a would otherwise have to be transported in boats in order to reach the steamer. small port of call like Kiukiang, where steamers stay but a short while, this makes all the difference in a competition which, owing to the advent of new lines under foreign flags, is every year becoming more severe.
I have, &c.
(Signed)
E. C. WERNER.
Inclosure 2 in No. 1.
your steamers will be absolutely excluded. If this is approved by His Majesty's Minister, the Nippon Yusen Kaisha will be responsible for its fulfilment, and for the breach will be liable for damages.
Should this form not be approved, and the original form consequently remain in force, the Council can call upon the Nippon Yusen Kaisha to pay the dues leviable upon your steamers (as stated in the Land Regulations and Licence contract) and also any sum assessed by me as damages, all of which payments the lessees may recover from your Company.
This is how the matter stands at present, and you will see, therefore, that it is impossible for the Municipal Council to accept your offer to pay to them the same duty as that paid by the lessees of the frontage in question, since this frontage has already been leased by the Council to those lessees for their exclusive use on the conditions stated in the Bund frontage licence, by the terms of which both parties to the contract are compelled to abide.
I have, &c. (Signed) E. C. WERNER.
Gentlemen,
Consul Werner to “ Compagnie Asiatique de Navigation.”
Kiukiang, March 1, 1907. I HAVE the honour to acknowledge the receipt of your letter of the 25th ultimo relative to the question of the use by your steamers of a hulk moored off the British Concession at this port, usually known as " MacBains' huik.”
On the 1st January of this year a new King's Regulation came into force with regard to this Concession. Before this, the Municipal Council were in the habit of levying a fee (the amount of which was fixed at each annual meeting) on the connection placed between a hulk moored in the river and the Concession Bund. Under the new Regulation the British Government authorizes the land-renters to issue licences to moor hulks opposite the portion of Bund frontage specified in the licences. The terms of these licences are drawn up by the Municipal Council in conformity with the wishes of land-renters, as expressed at the meeting, and are subject to the approval of His Britannic Majesty's Consul. By these licences a certain number of feet of Bund frontage at so much per lincar foot is assigned to an applicant by vote, aud he then has the right to moor his hulk opposite that portion and connect it with
the shore.
At the annual meeting on the 30th January last, 500 feet at the west end of the Bund were allotted by vote to the Nippon Yusen Kaisha. Before the vote was taken, an understanding was arrived at by the meeting as to the conditions under which the frontages should be leased (i.e., the conditions to be embodied in the licence), and it was decided that only the steamers under the management of the Nippon Yusen Kaisha should be admitted under the Japanese licence. This was done because it was naturally considered that British interests suffered through the competition of foreign lines subsidized by their Governments.
In clause 2 of the licence form adopted by us under the new King's Regulation, provision is made by which, on certain conditions and payment, occasional extra Steamers (such as chartered steamers or steamers temporarily taking the place of those named in the licence) may use the frontage, but this clause was adopted on the understanding that it would not admit a whole line of steamers regularly running, belonging to other owners, flying a different flag, and competing with the British lines trading at this port. Notice was accordingly given to the agent of the Nippon Yusen Kaisha, and through him to your Company, that the steamers of the "Compagnie Asiatique de Navigation" could no longer make use of MacBains' hulk. In spite of this, the Nippon Yusen Kaisha in Shanghae informed their agent at this port that you intended to use the hulk without their consent, and on the arrival of your steamer, the "Li Fong," on the 10th ultimo, the captain brought the steamer alongside the bulk and refused to leave, in spite of the protest of the agent of the Nippon Kaisha and myself, who accompanied him at his request.
This unwarranted and forceful breach of the terms of the licence rendered the Nippon Yusen Kaisha liable to the Municipal Council for breach of the agreement, and the matter having been referred to me, I reported it to His Majesty's Minister at Peking, in whose hands it now is.
I may inform you that, in order to carry out the wishes of the land-renters, the Municipal Council has adopted a wording of clause 2 of the licence form by which
<
Inclosure 3 in No. J.
Compagnie Asiatique de Navigation" to French Consul-General at Shanghae,
M. le Consul-Général,
Shanghai, le 7 Mars, 1907. NOUS avons eu l'honneur de vous communiquer, par notre lettre du 25 Février dernier, la lettre que nous avons adressée à Mr. E. C. Werner, Consul-Général d'Angleterre et Président du Conseil Municipal de Kiukiang.
Il ressortait des explications qui avaient été fournies à M. le Ministre de France à Pékin par le Ministre d'Angleterre, explications dont vous avez bien voulu nous donner communication par votre lettre du 24 Février, 1907, que le Conseil Municipal de Kiukiang ne pouvait avoir en vue de causer quelque vexation à notre Compagnie, et que la question se réduisait en somme pour la Municipalité de Kiukiang à une simple question de préjudice financier.
Nous conformant à l'avis que vous avez bien voulu nous donner, nous écrivimes immédiatement à Mr. E. C. Werner, offrant de payer à la Municipalité de Kiukiang, pour l'utilisation commune du frontage alloué à la Compagnie Japonaise avec laquelle nous avons fait un Accord, une taxe égale à celle que la dite Compagnie payait elle- même, et cela à partir du 1 Janvier, 1907. La Municipalité de Kiukiang devant recevoir, de ce fait, pour le dit frontage, une double taxe, elle ne pouvait plus arguer d'un préjudice financier qui lui était causé, et il nous semblait que notre proposition ne pût qu'être acceptée.
Nous avons l'honneur de vous remettre sous ce pli copie de la réponse qui vient de nous être faite par Mr. E. C. Werner, lettre datée de Kiukiang 1 Mars, 1907, qui oppose à notre proposition et à notre très légitime demande un refus catégorique.
Ainsi que vous nous l'avez très justement écrit le 24 Février dernier, ce refus prouve, d'une façon indubitable pour tout le monde, le mauvais vouloir de Mr. E. C. Werner.
Ce mauvais vouloir est d'ailleurs très explicitement avoué dans la lettre de Mr. E. C. Werner, et nous n'en voulons pour preuve que le prétexte" (nous n'osons dire la raison) invoqué, et que nous trouvons dans le passage suivant de la lettre en question
"Ceci a été fait parce qu'il a été naturellement considéré que les intérêts Britanniques souffraient de la concurrence des lignes étrangères subventionnées par leurs Gouvernements.”
Et, plus loin:-
"Je dois vous informer que, en vue de mettre à exécution les désirs de contribuables, le Conseil Municipal a adopté une rédaction de la clause de la licence, par laquelle vos navires seront absolument exclus,"
En ce qui concerne le premier de ces paragraphes, nous devons dire que le prétexte invoqué ne résiste pas à l'examen. En effet, la Compagnie Japonaise que le Consul d'Angleterre a autorisé à accoster est elle-même très largement subventionnée par son Gouvernement, tout le monde le sait, et sa concurrence est considérablement
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