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MINUTE:-
PAYMENT OF PILOTAGE FEES BY MESSRS. BUTTERFIELD & SWIRE
ΤΟ
THE PEARL RIVER LICENSED PILOTS ASSOCIATION.
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As directed by you, I called on Mr. Yoshioka this morning to discuss this sudden development in the situation
th Association's letter to Messrs. Butterfield & 3wire dated July 29th demanding immediate payment of the fees charged, failing which no pilots would be supplied), I reminded Mr. Yoshioka that this question had only recently been re-introduced, that Mr. Kita's letter of July 13th had been answered by yours of July 17th and that further discussions had taken place on July 26th, when it was agreed that the term "reasonable fee" (clause 5 (e) of the Blunt Okazaki Agreement) should not have been unilaterally defined by the Japanese navy but should have been decided by bilateral understanding. I pointed out that this sudden threat on the part of the Pilots Association would not only jeopardise the chances of reaching a settlement on this question but would have most unfortunate repercussions on the discussions for any revision of the Blunt-Okazaki agreement.
2. Mr. Yoshioka concurred. Unfortunately Messrs. Butterfield & Swire had been most impolite in their dealings with the Association and the latter had become embittered. (This accusation was subsequently categorically denied by Mr. Dinsdale, the Butterfield & Swire agent, who said that his office had always been most courteous in their dealings with the Association. You later informed Mr. Yoshioka of this denial). Also the pilots had waited a long time for payment from Messrs. Butterfield & Swire and no payment had been forthcoming. The Japanese (except transports) and the Portuguese vessels had paid in full. I replied that the British company's cheque had been sent to the Japanese Consulate-General on July 19th and asked whether the Association was aware of this.
Mr. Yoshioka did not know; the cheque had been retained at the Japanese Consulate-General and your covering letter had been referred to the Navy. It was the Navy, backing the Association who had now decided to take matters into their own hands and had decided that, unless Messrs. Butterfield & 3wire paid full pilotage fees, they would not provide pilots after today. I told Mr. Yoshioka that you were not prepared to consider the solution which he had just suggested by telephone, namely, full immediate payment "under protest" of pilotage fees demanded, to be followed by discussions, as this amounted to payment under duress.
3.
Mr. Yoshioka agreed that it was a great pity that this situation should be allowed to deteriorate in this way. I asked him if the Navy realised that the failure to provide a pilot would cause the Blunt-Okazaki Agreement to lapse and tha in consequence Japanese vessels would not be permitted to sail
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