With regard to ropairs, Mr Anderson questioned the wisdom of thelast paragraph of this letter, which suggests that where extensive repairs are to be carried

out for neutrals it should be made a condition of tho permission granted that the vessels should agree to trade to allied countries. He told me (what is obvious

from the Press reports of shipping losses) that we are able to protect British ships much more satisfactorily than we can neutral ships, and that he considors

it desirable therefore that trade to the allied

countries, which means trado in the war zone, should be confined, so far as possible, to British ships and that neutral ships should be concentrated on the safer voyages. He asked us to send the Controller official

copies of the Board of Trade letter and other relevant correspondence, and I submit a draft accordingly.

66-240/1/67

Are

24.1.17

Any further commonoication should be wed to:-

THE ASSISTANT SECRETARY, MARINE DEPARTMENT),

And the following latter and somber Mould be quoted—

M.

1870

Telographic Address. BOARD TRADE, MARINE, LONDON.

(

Sir

505

BOARD OF TRADE,

REG

3376

REG 18 JAN 17

(MARINE DEPARTMENT),

7, WHITEHALL GARDENS,

17th January 1917.

LONDON, S.W.

With reference to your letter of the 9th January No:61789/1916, and previous correspondence respecting the control of ship-building and ship-repairing facilities at Hong Kong and in the Straits Settlements

I am directed by the Board of Trade to state for the information of Er. Secretary Long, that they. do not desire to restrict the work of the yards in those colonies, either as recards shio-building or repairing.

Owing to the great scarcity of material, it is not possible to supply much, if any from this country, but the more work the yards can do the better

It should, however,imythe opinion of the Board

be arranged that, so far as it is at all possible to do so, this work shall benefit the Allies and if the yards build ships for neutrals, or carry out extensive repairs for neutrals, those vessels should be bound to trade to Allied countries.

The Inder Secretary of State,

Colonial Office.

I have the honour to be,

Sir.

tou

four obedient servant,

Ermanl

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