COPY
21
British Consulate-General,
Canton.
19th July, 1940.
Sir and dear Colleague,
In continuation of my letter of July 17th, I have the honour to enclose a cheque from Messrs. Butterfield and Swire, duly endorsed by me in your favour, for HK$1,130, in payment of pilotage fees in connection with their company's SS "Fatshan" from February 1st to June 30th in accordance with the detailed statement enclosed in my letter under reference. This payment represents all that I feel sure you must agree can be construed as "a reasonable fee", in accordance with the spirit of the Blunt-Okazaki agreement under the circumstances of the then fortnightly, and later increased to weekly, service of SS "Fatshan". That fee represents the sole tariff which Mr. Okazaki or myself could have consulted at that time, had we defined "a "reasonable fee". I contend therefore that this amount represents a maximum "reasonable fee" within the meaning of clause 5(e) of the Blunt-Okazaki agreement, for as long as that Agreement or the present continuation thereof, exists. Moreover, it will remain the only fair interpretation of "a reasonable fee" until the Pearl River is fully open to navigation, or at least until the second or further stages of the re-opening are reached and involve the supply to British vessels concerned not of one pilot for one vessel per week, but of numerous pilots for numerous vessels weekly. It can then be argued that pilotage will have become a commercial proposition, and I am prepared to discuss the matter further with you in order to conform more closely with your view of a "reasonable "fee", as urged in your letter of July 13th. In this connection I would remind you moreover that in your letter of April 20th you informed my predecessor that "the "Japanese authorities are prepared to reconsider and "moderate the rate of the fees".
2. I earnestly hope that you can see your way, with myself, to accept the above compromise settlement.
Nagao Kita, Esquire
H.I.J.M. Consul-General
Canton.
As/