Kowloon Railway is of course run under a joint

agreement for working with the H.K. section,

but the Govt. of H.K. has no direct financial interest

in the Chinese section, and I do not see why

·

they should continue to supply cheap coal to that

This is neglegitt

the Chua

section apart from unexpired undertakings.

However, this point is really immaterial ),

·

As to the general question, we cannot claim

for H.K. more favourable treatment than is accorded to

Crown Colonies generally. We must I suppose

acquiesce in the market rate; and we had better

ask the M. of S. as Mr. Holt suggests how the:

freight of 35/- is arrived at.

To procede

Are

15.4.18

273

70

Gaston Dept=

Yor Amazon

Colonial Office.

Mesers. John Swire & Son say that the freight

on coal from Japan to Yong Kong is very high owing to the

Bcarcity of tonnage, Their latest advices shew that 14

yen, sey 28/30 shillings was quoted.

With regard to requisitioned tonnage, I

understand that the inistry of shipping contend that the

blue book rates pay the expenses of running steamers;

they take the war risk themselves. The blue took rate

of hire la paid on the gross tonnage,

The 8.8.War Wolf's" gross tonnage is 5875

tons and she apparently carries 7656 tons dead weight.

Assuming that the rate of hire is 12/- the

cost of the steamer would be g3524 per month to which

must be added cost of bunker coal, port dues and war

riek and possibly certain increases in weges &c which

have been allowed since the rates were fixed,

I cannot say what the Ministry would add to

the cost of the voyage for war risk which for the voyage

in question should be small but it certainly appears

that they are making a profit out of the Colony.

I!

If your view is that the inistry should not

make a profit out of a British Colony, I would suggest

that you ask then how the freight of 35/- is arrived at.

пики

28.3.18.

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