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Our clients are at present unaware under what legislative authority the above scheme is being carried out, and would be grateful for some enlighten- ment on the subject.

As far as we ourselves are aware, there are only two legislativo authorities under which such a scheme could possibly be brought into operation, and they are as follows:-

(a) Under the Proclamation in the London Gazette of the 3rd August 1914, the Lords Commissioners of the Admiralty by Warrant under the hand of their Secretary, or under the hand of any Flag Officer of His Majesty's Navy holding any appointment under the Admiralty, are entitled to requisition and take for service any British ship or British vessel as defined in the Merchant Shipping Act 1894 within the British Isles or the waters adjacent thereto, for such period or time as may be necessary, on condition that the owners of all ships and vessels so requisitioned shall receive pay for their use and for services rendered during their employment in the Government service and compensation for loss or damage thereby occasioned according to the term to be arranged as soon as possible after the said ship has been taken up, cither by mutual agreement between the Lords Commissioners of the Admiralty and the owners, or failing such agreement, by the Award of a Board of Arbitration to be constituted and appointed for the purpose.

By a Proclamation in the London Gazelle of the 14th August 1914, certain persons were appointed to the Board of Arbitration contemplated by His Majesty's proclamation of the 3rd August 1914, and Lord Mersey was appointed as President and Mr. William Walton as Vice-President.

By an Order-in-Council dated the 28th of June 1917 by way of amend- ment to the Regulations called “the Defence of the Realm Regulations" under the Defence of the Realm (Consolidation) Act 1914 it is provided by Regulation 39 BBB :-

1. That the Shipping Controller may make orders regulating and giving directions in respect of the nature of the trades in which ships are to be employed, the traffe to be carried therein, and the terms and conditions on which the trade is to be carried, the ports at which cargo is to be loaded or discharged or passengers embark or disembark (including directions requiring ships to proceed to specified port for the purpose of loading or unloading cargo or embarking or disembarking passengers) the ports at which consignees of cargo are to take delivery thereof, the rates (maxima or minima) to be charged for rates or hire of ships and the carriage of passengers, the form of bills of lading and passenger certificates, and other matters affecting shipping where it appears to the Con- troller necessary or expedient to make such order for the purpose of making shipping available to the needs of the country, in such manuer as to make the best use thereof having regard to the circumstances at the time, provided that any order made under this Regulation shall have effect subject to any Regula- tions made or Orders given under Regulations 37, 38 or 30.

2. Any Order made under this Regulation may contain such provisions as to entry inspection of books and documents or otherwise as may appear to

the Controller necessary or expedient for the purpose of his duties.

3. The Shipping Controller may by order requisition or require to

be placed at his disposal, in order that they may be used in the manner best suited to the needs of the country, any ship, or any cargo space or pas-

senger accommodation in any ships, or any rights under any charter, freight engagement, or similar contract affecting any ship and require ships so requisitioned to be delivered to the Controller or any person or persons named by him at such times and at such places as the Controller may require, where it appears to the Controller accessary or expedient to make any such order for the purpose of making shipping available for the needs of the country in such manner as to make the best use thereof having regard to the circumstances of the

time.

Such compensation skall be paid in respect of the use of the ship or cargo space or passenger accommodation requisitioned under this Regulation and for service rendered during the use thereof, and for loss or damage thereby occasion- ed as in default of agreement, may be determined by the Board of Arbitration constituted under the Proclamation of the 3rd of August 1914 respecting the re- quisitioning of ships by the Admiralty,

(6) By a Proclamation published in the Hongkong Government Gazelle on the 5th August 1914 bringing into operation the Order-in- Conneil of the 26th October, 1896, it is provided—

6. The Governor may require any person to supply any animals, vehicles, ships, boats, or other personal property belonging to or under the control of such person to the Government, if such property be required in aid of or in connection with the defence of the Colony, and, in default of the person supplying the same, may seize and take possession of and retain such annak, vehicles, boats or other personal property for such purposes.

12. The Governor shall, out of the public funds of the Colony, pay to every person who shall be required to do any personal service by virtue of this Order such remuneration and to every person whose property shall be taken or temporarily taken possession of or removed or destroyed by virtue of this Order such compensation as shall be agreed on between the Governor and such person, and in default of agreement, such remuneration or compensation as shall be awarded by the Board hereinafter mentioned whose award shall be final.

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13. For the purpose of determining the amount of any remuneration

or eompensation payable under this Order

the Governor shall appoint a Board consisting of five persons, of whom one shall be a Judge or Stipendiary Magistrate, two shall be officers either in the Civil Government of the Colony or in His Majesty's naval or military service and the other two shall be inhabitants of the Colony. All questions referred to the said Board shall in case of a difference of opinion, be decided by the votes of the majority of the members. The Judge or Stipen- diary Magistrate shall be the Chairman of the Board.

Should the above scheme have been brought into operation under the powers contained in the Proclamation in the Hongkong Government Gazelle of the 5th August 1914 bringing into operation the Order-in-Council of the 26th October 1896, in view of His Excellency being prepared to assist our clients in every way in his power, our clients feel justified in suggesting that His Excel- lency might be prepared to appoint a Board for the purpose of fixing the re- muneration and compensation to be paid to the owners under the above scheme.

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