They

Companies that they cannot get enough work for British

owners to occupy

their Guilding & repairing sources fully. It would certaing seem desirable that these resources in so far as they are not required for British ship should he employed in fully as possible

on

neutral

ak,

Sorory of course as no hi- -pertant police of land is porqudiced.

The police ostal probabl

has two chests

@ to prevent rectial

owners getting faciliter which are hader Britest ownen.

@. To blackmail Metal

ownen uito

puttery

their ships into

Trades necessary for

our prespeses.

The second may prevent

us

from allowing bentials the un-

Ver 3490

ENP

14418.

sir,

BT 34910

Cass

REC?

61789

15

REG 260EC16.

GOVERNMENT HOUSE.

HONGKONG.

16th. November, 1916.

I have the honour to acknowledge the receipt

BT of your despatch No. 196 of the 9th. August and your telegram sacq2 of the 2nd. November regarding the taking of steps for the 52c92

control of ship-building and ship-repairing facilities in Hongkong.

2.

I enclose copies of correspondence with the two leading Dockyard Companies of the Colony, in which they make representations to the effect that any embargo upon the repair of neutral ships will be greatly to the detriment of Hongkong, while they emphasize the point that a large part of the material requir- -ed for such repairs comes from Americo.

3.

It is undoubtedly the case that the local yards have capacity for considerably more work than that offering; and the labour employed, though perhaps some of it might be diverted for Lilitary purposes elsewhere, would probably for the most part be- -take itself to neighbouring ports, if there was no longer sufficient inducement in Hongkong.

4.

It will be seen from the third enclosure to this Despatch that the Componies have been informed that this Govern- -ment is generally in sympathy with the view that the work of ship-building and ship-repairing for neutrals should not be interfered with, unless such interference will secure a direct benefit to Imperial interests; and, as regards ship-repairing,

THE RIGHT HONOURABLE

ANDREW BONAR LAW, M.P.,

&c.,

&C..

&c...

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