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the Government to take into consideration the fact that any attempt on its part to undercut rates on the China Coast by means of its controlled vessels would meet with bitter opposition from the Indo-China and China Navigation Companies, whose vessels were oper ated under the Imperial Scheme.
8.
It is then the case that vessels not required
for special services were run at market rates, but it is impossibk to accept the allegation of the Government of the Straits Settlements that this course resulted in lack of Government control. Every run was watched most carefully by the Shipping Control Committee, and no charter was let unless the trade
was considered to be in essential Imperial or Colonial interests. Each charter was endorsed by the Committee, who reserved in each case the right to take the ship back at short notice; and sub- chartering without the Committee's approval was forbidden. The Government of the Straits Settlements have been misinformed in that respect. With reference to that Government's statement that it was impossible to place any reliance on the continuance of any vessel on any particular run, it must be pointed out that the requirements of the Straits Settlements were unknown to the Hong Kong Government except in one instance which will be dealt with later. Any representations would have had most careful consideration, and all possible steps would have been taken to render tonnage available.
9. The Government of the Straits Settlements refer more particularly to certain vessels regarding which the following remarks may be made.
(a) The s.. "Haimun" is the vessel that was referred to in the concluding paragraph of Mr. Severn's Confidential Despatch ofthe 1st November. It was doubtful whether the charter entered upon shortly before the institution of the control, was genuine, and Mr. Bong was consulted by telegram as to whether the Hong Kong Government was bound thereby when the vessel was not required for special purposes. The vessel was taken up in June to
carry