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OUTSVOD

Draft telegram to the Secretary of State for the Colonies

95

Your cypher telegram of 18th. May. Repraeentative Committee of shipping men with Chinese and Naval representatives E appointed by me to advise as to what are vital requirements of Hongkong emphasize the fact that Hongkong being only a great trading port and distributing oentre for South China subsiste practically on shipping alone upon which with ite connected avocations the native population of Victoria and Kowloon number- ing about 400,000 persons depend for their living. They urge and I agree that it is impossible to define the vital requiremente of Hongkong in mere tons of foodstuffs and of the comparatively small supplies required to carry on the few local industries. The Committee point out that already almost 50% of the shipping in Far Eastern waters which used Hongkong has been requisitioned and that Hongkong trade had already euffered esverely in oonsequence. They however agree that at present six more ships oan be spared, but they urge strongly that no further ships should be requisitioned from Far Eastern waters without first reviewing the situation and indicating the service for which the vessels are required, and that it is essential to keep alive a nucleus of the British shipping services trading with Hongkong which it has taken many years to build up. The Committee are imbued with a sense of the Imperial necessities and a desire to assist, but consider that the above affords the most practical method of dealing with a difficult situation. I entirely agree with the Committee and advise that their suggestions be adopted.

I am further of opinion that it would be useful

if the Committee could be recognised as a local advisory Committee to be consulted by the London Committee acting under

the Comptroller of Shipping.

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