questions will
9. In connection with charges incurred in running the vessel doubtless arise for discussion and settlement. Meantime it is sufficient to lay it down as a general principle that you are authorised to incur expenditure which, as a prudent owner, it has been your practice to incur in the past.
10. The Government shall have the advantage of all existing coal or other con- tracts, but, where the owner or company supplies goods from its own stock or renders services with its own plant, such shall be charged for at the then current market rates.
11. The Government will accept all war risks (vide clause 19 of Charter Party T. 99) but, where it has been your practice to incur this expense in the past, you are authorised, for the present, to continue the expenditure on Government account, whether in the form of premium or call in respect of Policies on hull and machinery, including the continuance of any excess value insurance hitherto main- tained by you, on the understanding that you will hold the Government absolved from liability in respect of the amount for which insurance was effected under insur- ance policies; but when any policy on a vessel lapses it should not be renewed.
12. If the war risk insurance above authorised is vitiated by your obedience to Admiralty instructions, other than those of local navigation, or by your obedience to instructions of the control Committee, the Government will indemnify you against. the consequences.
13. Marine insurance is an owner's liability except that any extra premium, incurred through a ship being ordered by the Committee outside the limits of her policy, will be paid by the Government, and should be included in the voyage accounts concerned.
Prior to incurring such additional expenses the Secretary should be notified.
14. Finally the general intention is that, subject always to the instructions of the shipping control Committee, you should run your vessel as for yourselves, though on account of the Government, who confidently look to you to conduct the business with as much zeal and care as if your own interests were still involved. Full directions with regard to the tinancial arrangements will be communicated later, and in the meantime your vessels should be kept running as before.
15. It must be understood that the only compulsory part of the above scheme is the requisitioning of the ships, and that the other parts of the scheme are proposed for your acceptance as the most convenient arrangement in the interests of all con- cerned. The ships will be requisitioned in any event.
16. With a view of arriving at a complete understanding regarding this scheme and to elucidate any doubtful points, it is suggested that the Chinese Owners appoint two and the European Owners appoint one representative to meet the shipping control Committee in the Sanitary Board room, Post Office building, at 11 a.m. on Thursday, the 28th March.
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I have the honour to be,
Gentlemen,
Your obedient servant,
Colonial Secretary.