PY.

Enclosure /.

37 18189

Paraphrase of Cypher Telegram.

RECH

From.....

To...

.Governor, Hongkong

of 17 APR 16)

.Secretary of State.

Date....

22nd. February, 1916.

Jardine, Matheson & Company Agents for Indo China Steam Navigation Company learn that their steamer "Hinsang" has been requisitioned by Government and that other stemers are likely to be requisitioned before long. They have no wish to evade their responsibilities but on their behalf I would

respectfully point out that the withdrawal of more tonnage from these waters will seriously hamper British trade.

"Hinsang is specially fitted for carriage of henvy timber and is the mainstay of communication and of timber trade between Hongkong and British North Borneo. This trade as severaly cut into by subsidised German steamers and the withdrawal of this steamer will prejudice organisation to prevent Germans re-entering the trade and will leave trade

open to Japanese.

On their behalf I would also emphasize the importance of their Calcutta line by which regular connection between Hongkong Straits and India and the emigration traffic between Hongkong and Singapore is maintained. If vessels employed

in this trade are withdraw I am much afraid the entire trade ill pass under Japanese flng.

I should be obliged therefore if representations could made in the proper quarter for special consideration for the steamers referred to which are employed in important trade between

British Ports.

May.

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