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PUBLIC RECORD OFFICE

C.O.

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17 PUBLIC RECORD OFFICE, LONDON

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might be destroyed by similar associations among their lines.

But there seems to be a tendency for the great American producers to buy their own lines, a pro- ceeding which will effectually prevent them from entering "Conferences." Thus, at present, there seems little chance of improvement in freight from Europe as compared with United States of America.

The lowering in certain cases of freights from the Continent as compared to Great Britain would seem to be a natural result of the predominance of British shipping. The foreign lines (often aided by subsidies) compete with British lines for the carrying trade of their own countries. They do not seriously compete for British trade. Conse- quently the competition at Continental ports is much fiercer.

CONCLUSIONS.

The evidence shows that agreements of the character referred to in the third paragraph of the circular of 24th August 1899 exist in West Africa, South Africa, Straits Settlements, and China Coast, and Australasia.

They are maintained by the deferred rebate system.

They maintain freights, and therefore pre- sumably raise them above the competitive level.

In the Far East (and, perhaps, to a less extent in South Africa and Australasia) the Continent is favoured to some extent with lower freights than this country. This is often ascribed to subsidies.

The general absence of agreements in the case of lines from America to the Colonies causes freights to be relatively lower from America than from Europe.

The uniformity and steadiness of freights produced by agreements are an advantage to Inerchants.

In certain cases (e.g., Straits Settlements, p. 16) the existence of Conferences has enabled members to take action injurious to British trade.

Single cargoes have been prohibited.

The question of home and foreign railway rates needs enquiry.

No effective method of dealing with alleged evils has been put forward.

Some of the above conclusions are based on incomplete and, to some extent, one-sided evidence. Evidence is difficult to obtain, and those who know most appear to fear consequences to themselves if they communicate their knowledge.

May 1901.

J. FREDK. N. GREEN.

NOTE. Since this Memorandum was prepared, evidence on this subject has been given, in 1901 and 1902, before the Select Committee on Steam- ship Subsidies by two specially qualified Colonial witnesses, viz., Sir J. A. Swettenham, K.C.M.G., Governor of British Guiana, and formerly Governor of the Straits Settlements, and Sir Walter Peace, K.C.M.G., Agent-General for Natal.

December 1902.

J.F.N.G.

LIST OF APPENDICES.

A.-Confidential Circular of 23rd August 1899.

B.-Colonies to which the Confidential Circular was sent.

C.-Lines known to be included in the Singapore and Hong Kong Shipping

Conferences.

D.-Memorandum furnished by Secretary of New Zealand Department of Trade

and Customs.

E. Rebate Circular issued by the P. & O. Steam Navigation Company. F.--Resolution of the Legislative Council of the Cape of Good Hope. G.-Resolutions of the Legislative Assembly of Natal. II.-Conference Circular of 7th December 1897. J.-Lists of Steamers sold to the Foreign China Syndicate.

CIRCULAR. CONFIDENTIAL,

APPENDIX A.

SIR,

Downing Street,

23rd August 1899. WITH reference to my despatch of the 25th of November 1895, in which I invited the assistance of your Government in preparing returns to show the extent to which British imports were being replaced in the Colonies by similar Foreign goods, and the reasons for such displacement, I have the honour to inform I have recently had under my consideration certain allegations to the effect that serious injury is being done to Imperial Trade by the action of combinations of shipowners under the name of "Shipping Conferences" or other designation.

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2. Without expressing any opinion as to the correctness or otherwise of these statements, I consider that they are of sufficient importance to render it desirable that the fullest possible information should be obtained from all parts of the Empire. 3. I would therefore request you to be so good as to report to me, with as much specific detail as possible, on the following points :-

i. The existence of agreements among various lines of shipping, with the object of raising freights, eliminating competition, or enforcing rules on their members.

ii. Differential freights on British and Foreign goods from the same port, or freights arranged so as to favour goods from a Foreign port as compared to goods from a British port, at an equal or less distance from the importing country.

iii. Differential freights on goods leaving the Colony for Foreign ports as compared with British ports at an equal or less distance, or freights so arranged as to favour trade with Foreign as compared with trade with British ports.

iv. Preferences shown to Foreign goods, Merchants, or Agents, by lines of

shipping.

v. Any similar matters affecting the import and export trade of the Colony

under your Government, especially British trade.

4. I should also be glad to learn your opinion as to the general effect of such combinations upon British trade with the Colonies, and as to the best manner in which their detrimental results, if any, can be neutralised.

5. It is probable that much of the most valuable and interesting information could only be obtained confidentially and with an understanding that no publicity will be given to the informant's name or his evidence. Under these circumstances

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