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COLONIAL SECRETARY'S OFFICE,

:

HONGKONG, 13th March, 1918.

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YAM

GENTLEMEN,

I am directed by His Excellency the Governor to inform you that it has been decided to bring under Government control all steamers flying the British flag, which have not yet been requisitioned for Imperial services, and which are not under the control of II. M. Ministry of Shipping in London.

2. Your vessel

come in this

category, and will be brought under Government requisition and control, similar to that of vessels under the home Liner Requisition scheme.

3. It is intended that, so far as practicable, you should run your vessel

as for yourselves, though on Government account, crediting full earnings and debiting net charges in an approved form of accounts, which are to be submitted to the Local Shipping control office.

4. Where your business is that of a regular established line, it is not the desire of the Government to interfere with the nature of it, or with your method of conducting it, except in so far as national interests might require; but, where vessels have been engaged in general charter business, it is the intention of the Government that the employment of the vessel should be subject to the approval of the local shipping control Committee.

5. The present sub-committee of the London Shipping Controller, and of his Deputy in the Far East, which has been duly appointed by the Governor to act also as the Shipping control Committee, is composed of Mr. G. M. Young, of Messrs. Butterfield & Swire, Mr. Robert Sutherland, of Messrs. Jardine, Matheson & Co., Ltd., and Mr. F. W. Cary, Expense accounts officer, H. M. Dockyard, as Secretary. A Shipping control office will be opened in the Post Office building shortly, and the hours, when the Secretary will be present, will be announced later.

6. Rates of hire will be based on official Blue Book rates, amended to cover extra cost of operating steamers in the Far East, and the terms of the arrangement generally will be in accordance with those of Admiralty Charter Party T. 90 (copy enclosed).

7. Government control will take effect on the first occasion of a steamer's com- plete discharge, on a date to be announced later, or, in the event of the operation of loading and discharging overlapping, on a date to be subsequently agreed on as the date of such completion.

8. While the charter hire paid covers the duties devolving on owners under a time charter (vide clause 12 of Charter Party T. 99) it is recognised that the fore- going proposals involve responsibilities and services of a more extensive character, amounting to the general management of vessels, for which the Government propose to pay a percentage commission on net Earnings.

379

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