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Cotil

SHIPPING CONTROL COMMITTEE,

MONTAGU Hover,

WAITERALIN

2nd February, 1917.

-29-3

Cockspur Street,

6295

London. S.7.

(

REC sir,

3 FEE 17.

111

I am directed by the Shipping Control Committee to acknowledge the receipt of your letter No. 3376/17 of the 29th January, with

regard to the construction and repair of ships at Hong Kong and

Singapore.

2. The situation has changed to some extent since the date of

the Board of Trade letter of the 17th Janary. So far as ship-

building for the account of His Majesty's Government is concerned,

the Committee are in communication with Messrs. John Swire & Sons,

Ltd., with regard to the capacity of the building yards at Hong

Kong for the construction of ocean-going vessels, and that firm is

being asked to supply detailed information of the labour, materials

and machinery available. The Colonial Office will be informed

later of the progress of the negotiations. The Committee do not

consider that it is at present necessary to pursue further the

inquiries as to the construction of ships for His Majesty's

Government at Singapore.

3. So far as construction for neutrals is concerned, the Committee

conour generally in the views expressed to the Governor of Hong Kong

in the telegram from the Colonial Office of the 23rd December, with

regard to the ships already being built for neutral account, and they

also consider that no further vessels should be laid down at Hong

Kang for neutral account. While they are aware that the policy of

limiting the whole activities of the shipyards which His Majesty's

Government control to work done for the benefit of the Allies has been

generally beneficial in its results, they are of the opinion that in

view of the remote and isolated position of Hong Kong, it is not

The Under Secretary of State,

Colonial Office,

Downing Street,

S, W.

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