Copy.
ENCLOSURE NO.1 of Canton Despatch No.191 to H. M.
Ambassador, Shanghai, of 30th August, 1940.
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BRITISH CONSULATE GENERAL,
Sir and dear Colleague,
CANTON.
30th August, 1940.
of
With reference to paragraph 9 of my letter to you August 6th and to subsequent conversations with yourself (and unofficially with the Japanese Naval Authorities), I have the honour to inform you that I have been authorised to propose for acceptance the following terms of settlement regarding the dispute arising from the non-payment of certain pilotage fees by the British Steamship "Fatshan", the detention of that vessel at Canton, and the suspension of the sailing of the Japanese Steamship "Kaiayu Maru" on August 4th:-
(i)
Cheques are enclosed for Hongkong dollars 5086.70, and Military Yen 4996.70. These represent the full amount of pilotage fees claim in respect of pilotage of the Steamship "Fatshan" from February 1st to July 31st. This payment is made by Messrs. Butterfield and Swire, under Article 5 (e) of the Agreement of July 4th, 1939, under protest, on the understanding mentioned in term (3) below.
(2) The Steamship "Fatshan" will at once be allowed to sail, and the continued sailing of that vessel (or of any British vessel) in accordance with the terms of the Agreement of July 4th, 1939 will be permitted.
(3) Immediate consultation will take place between you and myself as to what represents the term "reasonable" pilotage fees in Article 5(e) of the Agreement of July 4th, 1939, and payment will be made by the Steamship "Fatshan" as regards the past, and as regards the future, by British vessels under that Agreement in accordance with the scale (or scales) of fees fixed between you and myself. any refund is fixed to be due to Messrs. Butterfield & Swire under such scale, it will either be refunded to that firm or credited to them against future payments due in respect of pilotage fees.
Nagao Kita, Esquire,
I have, etc., (Signed) A. P. BLUNT.
CONSUL GENERAL.
His Imperial Japanese Majesty's Consul-General,
CANTON.
If
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