1

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I give this opinion with all due reserve, but feel that my remarks are in line with the general views of shipowners.

Clause 2.-It will be noted that it has been agreed men will receive half-pay from such time as they left their vessels until their return. That they may be

reinstated to

(a.) Their own company's vessels;

b.) Other vessels as may be mutually agreed upon.

Further, it is agreed that those men who return, for which vessels are not available, will receive half-pay until such time as reinstatement can be effected, but the limit of such half-pay shall not exceed five and a half months. In this connection, it is the opinion of shipowners that there was far from a unanimous desire on the part of employees to leave their vessels, and that they only did so under severe intimidation which unfortunately existed, In the circumstances it was agreed, and I rightly think so, that men forced out of their positions through no fault of their own, and in fear of bodily harm not only to themselves but to their dependants, many situated in Chinese territory, called in the circumstances for a considerate decision on the part of the shipowners.

Admittedly, such consideration might be construed as an undesirable precedent in the commercial future of the colony, and, recognising this, the shipowners took the opinion of the special strike committee of the Chamber of Commerce before conceding the point. As regards the fund referred to for meeting the expenses (in the shape of half-pay) of seamen whose ships are not immediately available, I would say that my understanding is that this will be met by a fund arranged between Dr. Jamieson and certain prominent Chinese gentlemen of the colony, headed by Sir Robert Ho Tung, as mentioned in the Government "Gazette" of Saturday last. So far as strike pay is concerned in the case of unabsorbed seamen, I must explain that late in the evening of the 4th instant, when the hitch in signing the agreement occurred, Dr. Jamieson and myself were confronted with an unreasonable demand in the shape of a guarantee of six months' half-pay if positions were not open for returning seamen on their arrival. This demand was largely responsible for the breakdown or suspension of negotiations, as Dr. Jamieson stated that it was not fair to ask the shipping companies to accept it, and on behalf of the shipping companies I stated that I saw no hope of such an unwarranted

concession.

During the final negotiations with delegates, Dr. Jamieson announced that the shipowners had refused the demand in connection with five and a half months' half-pay, and he considered that they were fully justified in so doing. Certain individuals, however, had come forward and said that, if it would assist a settlement, a fund to meet the case would be raised; no names of the guarantors were mentioned to the delegates. His Majesty's consul-general for Canton in his pronouncement appealed to the Seamen's Union and representatives of the Canton Chamber of Commerce to subscribe to the movement so generously put forward, and, as far as the Canton Chamber of Commerce are concerned, they promised to submit the proposal to their main body.

From the Government "Gazette" of Saturday last I learned Sir Robert Ho Tung is responsible for the establishment of the fund in question, and I shall get in touch with him immediately to ascertain his views aud the scope of the fund, also details of its administration. This in a measure is a charitable fund, entirely outside the province of the steamship owners, but at a meeting held on Wednesday last, when the agreement was ratified, I appealed to owners to do their utmost to generally assist the adminis- trator, whoever he may be, in making a fair distribution under the terms of our agreement. It was, however, understood that the fund must be entirely disassociated with the shipowners and administered by an independent official,

Clause 3.-This deals with the system of engaging crews. It has long been recognised that the present system of engagement is unsatisfactory to the men, but unless they help themselves it is useless for owners to extend the hand of assistance, The system is not that of the owners, but of the men, and, speaking on behalf of the steamship companies concerned, I would say that we welcome, and will assist in the inauguration of, any scheme whereby the wages paid go in their entirety to the proper parties.

The unfortunate system of "squeezing" is not only prevalent in the engagement of seamen, but in nearly all Chinese dealing of a similar character; and if, as a result of the late unfortunate strike, a clean channel of remuneration will in the future exist

7

between the masters and the men, it will, at any rate, have achieved a result of undoubted benefit to the community as a whole.

The foregoing, I trust, will convey the essential details of settlement, and a full report of negotiations will follow should you desire. It may be of interest to add that at the last meeting of shipowners it was unanimously agreed to form a Hong Kong shipowners' association, as it is hoped by so doing concerted action and better under- standing as between employer and employee will result. Any assistance you can give in the formation and inauguration of such movement will be greatly appreciated.

I have, &c.

R. SUTHERLAND,

Chairman, Shipowners' Committee.

Enclosure 3 in No. 1.

Agreement.

IT is hereby agreed between the undersigned parties that the following are the

terms of settlement on the matters in dispute between them :-

1. The scale of wages paid at Hong Kong and in force on the 12th day of January, 1922, shall be increased as follows, and shall apply as from the 1st January, 1922:-

(1.) Chinese river steamers

(2.) Other Chinese steamers up to 1,000 tons

deadweight

(3.) Kong Kong, Canton and Macao Steamboat

Co. (Limited)

(4.) Other British companies' river steamers, taking the scale of the Hong Kong, Canton and Macao Steamboat Co. (Limited) as a basis

(5.) Coasting steamers

(6.) Java lines

(7.) Pacific lines

(8.) European linea

(9.) Australian lines

Increase. 30 per cent.

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20

20

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20

21

15

15

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15

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2. A date will be fixed for the general return to work. From the time of leaving until such date, men will receive half-pay according to the new scale. Men may be reinstated on any of their own company's vessels or such other vessels as may mutually agreed upon. If positions are not available for men ready to return to work as above it is agreed that half-pay shall continue for such period as the men are not employed, but not exceeding five and a half months from the date of the general return to work. This half-pay will be administered from a fund under the control of a duly- appointed administrator.

3. The owners agree to assist in inaugurating a system of engaging crews which will minimise, as far as possible, any irregularities which may exist in connection with

pay of seamen,

the

Signed at Hong Kong this 5th day of March, 1922.

R. SUTHERLAND,

Chairman, Shipowners' Committee.

J. W. JAMIESON,

His Britannic Majesty's Consul-General at Canton.

CHAK HON KE

(Chinese Chop.)

LO TSUN MAN

(Chinese Chop.) LUK KING FO,

Signature of four Delegates.

Secretary to Commissioner for Foreign Affairs, Canton.

286

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