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one round trip for the first half of February and then the Government were insisting on a settlement of this matter and on February 22, that it was still unsettled and that our ship was idle. Moreover, as we told both Mr.Blunt and the Hong Kong Government in August would be the case, the Japanese are trying to hitch on to the pilotage negotiations others for a port labour and lighterage monopoly. We for our part have told our people not to run our ship at a loss any longer.
We cannot but feel that both Mr.Blunt and the Hong Kong Government have been unduly fearful about the risk of a rupture of communications between the two ports and the isolation of the former and the Canton community on Shameen. The latter also, in allowing negotiations about pilotage to draft on for six months, without using the promised pressure on the Japanese, have not sufficiently realised that complacence of this kind with that nation merely leads to further demands and that the only way to bring them to reason is to apply what pressure one can to them.
The reason given for the original Blunt/Okazaki agreement and for the further negotiations last August was that it would open the port of Canton to British tonnage.
We have been sceptical about this all through and, so far as we can see, that port is closed as tightly as ever both to the trade with Hong Kong and the really vital one to the other China Coast ports and is likely to remain so, until the Hong Kong Government can be induced to use the weapon at their disposal, namely that of closing their port to Japanese tonnage, as the Japanese have closed the China ports to British. We shall be very grateful, if you can see your way to use your influence with them to this effect.
We are,
etc.,
(sd.) JOHN SWIRE AND SONS LTD.