COPY
M. 18966.
195
T
The construction of ships intended for Eritish registry is litated in every way possible and the necessary certificates are issued by this Department, but the same facilities have not beer granted in the case of neutral vessels except in those cases in arrangements have been made for the vessel, when completed to be chartered to an approved British firm for the period of the war for some time afterwards at about half the current market rates. present the whole question of the position of vessels building heutral owners is under consideration with a view to the possibi of these vessels being ultimately completed for Eritish registry
With regard to the question of repairs every facility is gir in the case of British ships, but in the case of neutral ships f lities are not granted unless the vessel is employed in a trade favourable to this country or Allied countries. Further, if the pairs to the neutral vessel are of an extensive nature, the Boar require the vessel to be time-chartered to an approved British f
It will be observed that in this way shipbuilding and slip- ing in the United Kingdom are controlled in the national interest the Board desire me to suggest, for Mr. Bonar Law's consideration that the authorities at Hong Kong might be invited to consider t advisability of instituting a similar system of control of the s building and ship -repairing facilities at Hong Kong.
I have the honour to be Sir,
Your obedient Servant,
Address:
c/o British Consulate,
Vladivostock.
My Lord,
C.O
34910
REC? REG 25
Dairen, S. Manchuria, 6th June, 1916)
building facilities existing in Singapore and Hongkong, and suggest- A short time ago I called your Lordship's attention to the ship- ed that arrangements should be made to utilise those yards for adding to our mercantile tonnage. Since then it has been prohibited to ex- port from the United Kingdom any shipbuilding material.
I now beg to call your Lordship's attention to the fact that, though it has been prohibited to export shipbuilding material from the United Kingdom, no steps have been taken to prevent the shipyards at Singapore or Hongkong from building vessels for neutral owners. Surely it is only logical that, if the export of material is pro- hibited, we should prohibit the export of the complete vessel. The shipyards at Singapore and Hongkong are enabled to carry on their work under the protection of the Britih flag, they pay no Imperial taxes, and the local taxes are negligible. these yards to work cheaply, but this cheapness is being utilised to These conditions enable the advantage of neutrals.
At the present moment one of the Hongkong shipyards is build- ing large steamers for Norwegian and Swedish or Danish owners, and it would be no hardship if tilis yard were compelled to sell those vessels to British owners at prices to be fixed by our Government and the yards themselves to be declared under Government control.
I am, your Lordship's obedient ervant,
(Sgd) H.P. King
The Right Hon. Earl Curzon,
K. G., etc., etc., etc.,
118.
CO