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23

Hongkong & Whampoa Dook Co. Ltd.,

Hongkong, 10th. November, 1916.

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I am in receipt of your letters of the 28th, and

October and Erd. November, respectively and note the contente.

With regard to repairs to neutral vessels, I can

only emphasips, what was said in my letter of the 7th. October,

that with two very large private dry-docking and repair

establishments in Hongkong in addition to the Naval Dockyard

the facilities for repairs are so immense and so much in exodus

of the normal requirements of the port that any restrictions

whatsoever on repairs to neutrel vessels would be fatal to the

industry and against the interests of the Colony.

With reference to the building of new vessels for

foreign ownere, I pointed out that this company has at present

siz such ships under construction and I would respectfully

submit that any restrictions as to the rate of charter of those

vessels when completed would be decidedly unfair to thos9

Owners. These vessels were contracted for in June, 1915, and have

been very considerably delayed owing to the Government

restrictions of the export of steel material from home and the

owners of the four Norwegian vessels have agreed to pay a larga

sum extra each vessel to get them completed with steel material

from America. If those ownere had ever imagined the restrictions

under which those vessels were to be chartered they would never

have agreed to pay this extra sun and the completion of the

ships would have been indefinitely postponed.

Further with regard to new contracts for neutral

vessels, this company would much rather build British than

neutral ships, but would respectfully submit that if sufficient

orders from British owners are not forthcoming to keep our

ship-building yard fully employed, it should be permitted to

undertake contracts for foreign owners, If any restrictions

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