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accordingly, a circular letter in the attached form being addressed to all owers, under date the 4th. February.
2.
Mr. Long in his Despatch lo. 252 of the 24th. October, 1918, referred for the consideration of the Hongkong Government certain representations made by hessrs. John Swire and Sone, Ltd., which were to the effect that the ships under the Hongkong scheme were given preferential treatment by comparison with the ships of the China Navigation Company. It will be seen from the enclosures under the ninth paragraph of Mr. Sever's Confidential Despatch of the lat. Novamber that this question of the differentiation between tramps and liners was referred by the Hongkong Government to the Agent of the Shipping Controller in Bombay, who replied that the matter had been settled in London, Lessrs. John Swire and Sons' arguments would seem to be quite untenable. As they correctly state, the vessels are old and of an inferior class, and they were not considered seaworthy enough to be taken on full requisition; and Sir Henry sy pointed out in paragraphs 10 and 11 of his Confidential Despatch of the 21st. May, 1918, that for this very reason the cost of upkeep was pro- -portionately heavier and special concessions should be granted. The ages of these vessels vary from twenty-seven to forty-thre years, and as they are not kept in good condition constant repairs are necessary, which have to be executed at a cost which has increased enormously during the war. It must be remembered that the China Navigation Steamship Company is closely associated with the Taikoo Dockyard, and it is very possible that they do not pay the prices charged to outside owners.
3.
The Ministry of Shipping, in their letter enclosed with ar.Long's Despatch, point out that the revision of tramp rates in the United Kingdom was necessary largely on account of the cost of insurance. In the case of the locally controlled trampe marine risks can as a rile be insured against for "total loss only", at rates between 10 and 15 per centum, it being
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