CO885-(16-18) — Page 623

PUBLIC RECORD OFFICE

C.O.

Reference :-

+885

17 PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH-NOT TO

18

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.

CC

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. aud 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.

14

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

*r

LL

46

"make any arrangement with that firm, but take

"

66

steps to drive them off the line to these

territories."

This seems to refer to indirect subsidies.

19

v. (c)-Sale of British Lines.

The well known fact that rotten British ships are frequently sold to the Swedes for the North Sea lumber trade appears to hold in the South also. In South Australia, the Agent of & Co.,

writes :-

"Scandinavians are buying most of the old English sailing vessels which come into the market, and this is not surprising when it is remembered that sailing vessels can be run at less expense under the Swedish than under the British flag."

Both from Hong Kong and the Straits Settle- ments reports have been received relating to the sale of British lines in the East.

The first was the Ocean Steamship Company (see Appendix J.), which was purchased by a syndi- cate working in the interests of the Norddeutscher Lloyd.

The Registrar of Imports and Exports at Singa- pore reported: "What is generally believed to have "been an inducement to German capitalists to take up the venture is the success attending the "efforts of the Eastern Shipping Conference to

obtain high freights."

The next sale reported was that of the fleet of the Scottish Oriental Steamship Company (see Appendix J.) to the same syndicate.

This gave the syndicate entire control of the only regular lines connecting Bangkok with the neighbouring British colonies.

The Acting Governor of the Straits Settlements reported that the syndicate was composed of the Norddeutscher Lloyd and Messrs. Behn, Meyer & Co. (see p 16), the wealthiest of the German firms in Singapore.

He also reported that it was endeavouring to control the coal output of Labuan, but it would seem that there is no foundation for this rumour.

44

(4

v. (d)-Elimination of Sailing Vessels and

44

'Tramps.'

It is obvious that the agreement will tend to eliminate "tramps," since, not being members of the Conference, single steamers will be unable to get return cargoes. This makes owners disinclined to charter steamers which often get remunerative return business when, previous to the Conference, they were allowed to take it, naturally, under equal circumstances (? they) ask a higher freight on cargoes of coal out, thus making the landed cost of Welsh coal higher than it would otherwise "be."--(Letter from & Company, Singapore.) See, however, South Australian Report quoted on page 7.

"

The most remarkable effect of the Eastern Conference seems to have been the destruction of the sailing route via the Cape. It appears that recently there has been a marked revival in the use of sailing vessels to carry bulky goods that do not deteriorate or that improve with time, such as timber. Sailing vessels require very small crews,