CO882-(6-8) — Page 479

PUBLIC RECORD OFFICE

Reference :-

CO. 882

PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH-NOT TO

44

64. But in that case the port will surely suffer in the long run, in that when ship- owners realize that they cannot always and at all times count on readily available wharf and dock accommodation, rapid cargo handling facilities, and quick dispatch, they will shun the place, or by enhancement of freight rates make it more expensive to the importer and trader.

65. It is upon up-to-date efficiency in these very respects that much of the future of Singapore-not merely in advancing, but even in holding her own-hangs, I believe. 66. As to the question in (b) paragraph 8, viz., whether the shareholders of the Company will, if they do not get the necessary funds from Government on reason- able terms, carry out these works, my belief is decidedly on the negative side; and I have supported this belief by setting out in paragraphs 22, 62, and 63 hereof, what I believe will in that case happen.

67. It follows that I am an advocate for the course of Government stepping in. It even seems to me that the circumstances and position have in themselves created for Government the opportunity of at once and for all time accomplishing and obtain- ing what I believe it has already at times felt the want or advisability of, viz., not only some control by Government over the doings and management of the Tanjong Pagar Dock Company, but that those directing its affairs can deal directly and finally with the Government authorities on the spot, who surely should be responsible for satis- factory conduct of those local and internal affairs on which the welfare of the Colony must greatly hang.

68. I strongly, but respectfully, advocate that the Tanjong Pagar Dock Com- pany should be kept as it now is a commercial corporation, but that the Government of Singapore should, quite independently of any references in the conduct of the Company's business to shareholders in London, obtain controlling power on its Directorate at head office (Singapore), and insist that the direction of the Company's duties and responsibilities to the port shall, in practice as well as in name, be exer- cised only in Singapore, and not as at present, governed and directed by the voices of irresponsible retired merchants in London.

69.

The methods that I venture to suggest and urge for obtaining this, are:-

(i) That the funds (up to an arranged limit) required for giving effect to the large works in question, shall be arranged for by Government as a loan to the Company secured by Debenture Mortgage.

(ii) That the rate of interest for the loan shall be a rate that will constitute an inducement to the Company to accept the money upon conditions that shall be laid down by Government as quid pro quo for its financing the Company.

70. As to the conditions that might be laid down by Government, surely if the Federated Malay States give out a loan appealed for, amounting to millions of dollars, they are reasonably entitled to stipulate for, and to be given, security of the most complete kind?

71. It is from the side of the Tanjong Pagar Dock Company that an appeal has been made to the Federated Malay States for help, in the form of what will really come to a very large sum of money.

72. If some millions of dollars are lent by the Federated Malay States to the Tanjong Pagar Dock Company, I venture most gravely to doubt if the rulers and communities of these States would elect that the interests of these States should, in any degree, lie in the hands or control of a London Committee, or, indeed, of any civilian body in London having side interests of its own that can come into conflict with those of the Federated Malay States?

73. If the Federated Malay States lend this money, I assume that the cardinal reason for their doing so will be to secure a controlling position and other advantages. not for the Tanjong Pagar Dock Company, but for the Government of the Federated Malay States, whose interests are now interwoven with, and inseparably linked to those of the Straits Settlements, and vice versa.

74. If this be the case (and I fail to see how the fact can be got away from), then the Rulers and communities of the Federated Malay States surely may ask :-

"These millions of dollars are, from our point of view, being paid out by us only because the works are to fulfil the aims and plans of Government. That being so. by what manner of reasoning, right, or policy, is a final 'say,' and a power of veto-affecting the whole of our millions lent- to be given to a group of civilian gentlemen in London, who have

75.

45

interests to consider other than (and probably in preference to) those of the Federated Malay States?"

Was the principle herein involved not insisted upon by Government in settling the Johore Railway Convention, viz., that if the Federated Malay States was to lend millions for the construction of that railway, the spending of the money, i.e., the work of construction, must be unquestionably under Federated Malay States control and direction? The Johore Advisory Board has not, I imagine, been allowed, nor given final, or indeed, any "say" in London of how the railway work-for which millions of dollars are to be lent by the Federated Malay States-is to be carried out? With such a case as that of the loan to Johore for its railway, this financing of the Tanjong Pagar Dock Company for large works, seems to me to be very much on "all fours."

76. My suggestion is, that if the Federated Malay States are going to comply with the appeal of the Tanjong Pagar Dock Company to lend that Company some millions of dollars, the considerations that the Federated Malay States should lay down as quid pro quo for lending the money, should be as follows:-

(i) That the Company remains constituted as it now is, i.e., as a commercial

corporation.

(ii) That direction and control of all the Company's doinged business shall lie with Head Office of the Company, viz., in Singapore, and in Singa-' pore alone. (iii) That the directorate of the Company shall be of, say, seven persons,

of whom Government shall appoint four, and the shareholders three. (iv) That all money loaned to the Company shall be on the footing of, and secured by, mortgage debentures, interest thereon to be at a rate that shall not exceed 4 per cent. per annum.

(v) That the Company shall alter or add to its Articles of Association so as to ensure that for every $100 of money loaned to the Company by Govern- ment, Government shall at all proceedings and meetings (meetings of directors included) possess the same strength of voting power as belongs to every $100 share of the Company. (If ten million dollars be lent Government would thus possess 100,000 votes.)

(vi) If the Authorities see no objection I think it ought also to be stipulated that every director of the Company shall be a British-born subject. On several occasions I have, as Chairman of the Tanjong Pagar Directors, found it impossible or unadvisable to discuss at the Board table in an Imperial or British aspect matters that I would thus have desired to have presented to my colleagues; this because there are foreigners on the Tanjong Pagar Dock Company's Board, who, I felt, would not have hesitated at once to patriotically pass on informa- tion to their Consul.

77. I remember at least one occasion on which a communication from Govern- ment addressed to myself as Chairman of the Company had to be withheld from my colleagues through this danger; and I believe there were others.

78. The Directors of the Tanjong Pagar Dock Company have clearly admitted and placed on record their unqualified view and opinion that the large works for which they desire a loan from Government are necessary in the interests of the Port. (This is on the Minutes of the Company.) It is, therefore, difficult to see how they could consistently now refuse to entertain conditions from the Government side,

uch as I have suggested above.

79. I understand it has been suggested that the existence of the London Consult- ing Committee of the Tanjong Pagar Dock Company should be continued, and its position and functions perpetuated, possibly with some modification, such, for instance. as that Government should have the nomination of two out of the five members of that London Committee.

80. If it be true that the Tanjong Pagar Dock Company stands in the manner and degree of relationship and responsibility to the port and trade of Singapore as a whole that I have attempted in this memorandum to describe, then one would k-Will it be a sound and reasonable thing that some proposal of that Company's- made by those directing the affairs and needs of the Company in Singapore, possibly not only approved, but, perhaps, even urged by Government there shall be liable In the veto of a group of merchants in London, whose last immediate knowledge

Singapore itself was. more or less, twenty-five years ago?