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(b) Purchase by Chinese of vessels of principal
Japanese and British shipping companies. For this
XXXX
X
purpose Sino-foreign companies would be formed, 51%
of share capital belig Chinese and vessels flying
Chinese flag.
2. As regards (b) I enquired whether he con-
sidered it likely that Chinese shipping interests would
be able or willing to purchase such interests in foreign
companies citing in particular present deplorable finan-
cial position of China Merchants Steamship Company.
X
He replied that this was the principal difficulty
but he thought some arrangement could be found on the
lines of hire purchase supported if necessary by gov-
ernment subvention.
X
X
Possibly solution would lie along lines of com-
bination of alternatives (a) and (b).
3.
X
In reply to my enquiry as to whether it was
proposed to prohibit foreign vessels proceeding to
such places as Hankow he replied that all ports access-
ible to ocean shipping would remain open for direct
trade from a foreign port.
Chinese inter port trade as well as inland naviga-
tion would in any case be restricted to vessels flying
Chinese flag.