COPY.
C.
THE HONG KONG CANTON & MACAO STEALBOAT CO. LIMITED.
65
HONG KONG, 5th April, 1927.
Sir,
The Directors desire to record their appreciation of the
keen sympathy and interest displayed by His Excellency in the
affairs of our Company in connection with recent discussions
over the incident on s.s. "Kinshan”.
2. It should be clearly understood that in deciding by a
large majority to concede the demands of the Seamen's Union,
the Directors were influenced by the present financial con-
dition of the Company which would make it impossible to with-
stand any prolonged struggle, and also by the improbability of
obtaining adequate compensation from the Imperial Goverment
to meet losses that would certainly be incurred in the event
of the demands being refused.
3. In view of the Governments offer, however, to guarantee
Trading loss for April and also to place the position before the Secretary of State by cable, with a request for Imperial assistance, the attached letters were yesterday despatched to the Seamen's Union and our Agents in Canton, which are in
accord with the final decision arrived at during our interview with His Excellency yesterday morning.
Trading loss is understood to be the amount of loss incurred
in maintaining the full joint service (with s.s. "Fatshan")
between Hong Kong and Canton, after allowing for usual
insurance, depreciation at 5% per annum on original cost of steamers, proportion of management expenses and other standing charges and without deducting estimated cost of "laying up". As an estimate of cost of running this service without any earnings the figure of $60,000:00 per month was indicated.
It