CO885-(16-18) — Page 622

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This of course only applies to Continental freights. The most important differences are in American as compared to European rates, and there is no hint that these are in any way due to subsidies.

Subsidies are referred to frequently in Bluebook C. 8449.

The Governor of the Gold Coast considers that if the position of the English lines were weakened in any way the heavy subsidy paid to the Woermann line might result in differential freights.

The Collector of Customs, Natal, appears to think that the advantage given to the Continent (see page 12) is due to subsidies.

The Acting Governor of the Straits Settlements considers that foreign subsidised lines may be able to offer extra secret rebates and that consequently "the policy of the Conference, which favours sub- sidised lines, and boycotts single ships (see page 19) is (unintentionally) hostile to British interests.

This question of secret rebates is rather obscure and it would seem that their adoption on any larger scale must break up a Conference. The circular following as Appendix E. is supposed to refer to such an extra rebate.

Mr. A- -'s confidential letter to the Officer Administering the Government of the Straits. Settle- ments refers to a rumour that the German house of Messrs. Brinkman & Co., and perhaps other houses, receives extra secret rebates.

Nothing is mentioned in the Hong Kong reports on the effect of subsidies.

The Australasian Colonies nearly all refer to the foreign subsidies. New Zealand (see Appendix D.) mentions "the low freight arising from the subsi- dised lines to Australia." The confidential letters in the South Australia Reports refer to the French and German Government subsidies. The low freight to Sydney by French and German mail boats as compared with the Orient and P. and 0. steamers is attributed to subsidies, and Victoria draws special attention to the large subsidies granted to the Messageries Maritimes and the Norddeutscher Lloyd. In fact, the general ten- dency of Australian opinion appears to be to attribute such differential freights as exist to foreign subsidies.

Another important point in connection with subsidies is that it is considered that without their help many Continental lines could not compete effectively with British lines at all.

The Commissioner of the Niger Coast Protec- torate writes :-" Were it not for the shipping "carried on by Messrs. Elder, Dempster & Co. on the south coast in the French, German, and Portuguese ports, where they are at a disad- vantage in competing with the German line of Messrs. Woermann, they would, I am sure, not make any arrangement with that firm, but take steps to drive them off the line to these territories."

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£6

This seems to refer to indirect subsidies.