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233
Hongkong. 6th November, 1917.
G. T. Edkins, Esq.,
Chairman,
Vital Requirements Committee.
Dear Sir,
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JOLSI VE
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In reply to your enquiry as to the effect the requisitioning of the S.S. "Burrumbeet" would have on the coal supplies of the Colony, we would first explain that the Kailan Mining Administration, in addition to their Chinese business, hold contracts with Messrs. Jardine Matheson & Co., Ltd., chief- ly we understand, for the supply of the Indo-China steamers, with the Dock Co., Tramway Co., Hongkong Electric Co., Hongkong, Canton & Macao Steamboat Co., Hongkong Steel Foundry Co., and others, to the end of this year at comparatively reasonable rates. Further, during the year, in order to meet the require- ments of the local Goverment, they made contracts with them at low rates, under which they have to supply, provided their tonnage is left undisturbed, 7,400 tone during the remaining months of the year. At the present time approximately half the Administration's coal supplies is brought down by the "Burrum-
beet" and "Patriot" and the other half by the "Shinfoo" and
"Fukuichi Maru" both expensive time-chartered steamers, the
cherters for which expire at the end of this year. Renewals of
these charters, or fresh charters to replace, can only be made
at enormously enhanced rates and even if the "Burrumbeet* and
"Patriot" are left on the run, the average cost of bringing
the coal from Chinwangtao will necessitate next year a heavy
increase over this year's prices; should they be requisitioned
and the Administration have to rely entirely on Japanese or
Chinese tonnage at the fabulous rates demanded by owners, the
cost of the coal, although approximately only $3.50 F.0.B. Chinwangtao, will, in our opinion be prohibitive when delivered here for such lines as the Hongong, Canton & Macao Steamboat
10.