CO885-24 — Page 167

PUBLIC RECORD OFFICE

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24 PUBLIC RECORD OFFICE, LONDON

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ship. As regards the draft agreement, which was read out by Mr. Holt, the Com- mittee thought that the solicitors should ask the contractor to explain what was meant by a clause binding the Crown Agents to give him an indemnity against possible action by the United States Government for political reasons.

2. 8.8. "Frisia."-The Committee then considered an offer from Mr. C. H. Ross, on behalf of Messrs. Jardine, Matheson and Company, Limited, for the chartering or purchase of this ship. The Committee thought that a telegram should be sent to the Governor of Hong Kong, asking for full particulars of the ship, including particulars of her value, and that inquiry should also be made of the Governor as to the accommodation available for taking 253 Indians about whom he had already telegraphed to the Secretary of State. Mr. Ross should be asked pur- whether his figures for chartering the ship would be altered if the option of chase were removed. He should also be asked for a quotation for purchase expressed sterling payable by instalments in London, and the Board of Trade memorandum supplied by Mr. Roper in regard to a passenger certificate should also be communicated to him.

Quarta."-A telegram had been received from the Governor of the Straits Settlements to the effect that the Asiatic Petroleum Company had applied for the temporary charter of this vessel. The Committee recommended that par- ticulars of the offer should be obtained from the Company in London, and that full particulars as to the ship should be obtained from the Governor.

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4. 8.5. "Fürth.”—The Committee expressed the opinion that a British registry should be obtained for this ship as soon as possible.

Mr. Holt gave particulars of an offer which had been received for chartering the ship, but it was thought that further inquiries should be made of other steam- ship companies before any decision was reached.

5. A memorandum by Mr. Holt as to the procedure to be adopted in dealing with applications for ships was read to the Committee. The Committee thought that in no case should the Government run the ships themselves, as they had not the necessary organization at their disposal. Consequently the only policy which was practicable in the case of detained ships was to hire them out on charter. It was, however, pointed out that either a time or voyage charter presented various difficul- ties, as it would be impossible to secure that either form of charter should terminate at the end of the war. It was thought that the whole question of the procedure to be adopted by the Committee in regard to the disposal of detained or captured ships should be submitted for the decision of the Cabinet and that a memorandum should be drawn up setting out the position as far as possible and containing a statement as to the value of all (detained) ships in order to show the value of the ships to be dealt with and the possible liabilities which His Majesty's Government might have to meet at the end of the war. When the question of principle had been settled it would then be possible for the Committee to dispose of individual applications either for the sale or charter of ships.

Mr. Holt informed the Committee that Mr. Blake, partner of the firm of Messrs. Hogg and Robinson (Admiralty brokers), had stated that his firm could not possibly undertake any shipping work for the Committee. Mr. Maclagan, of Messrs. Turnbull, Gibson, and Company (India Office brokers), had informed him that his firm would be willing to undertake the work, and Mr. Holt added that the Crown Agents would also be willing to do so. The terms which would be charged would be the usual brokerage of one-third of 5 per cent. on the value of the ships dealt with to be divided between the two firms concerned. It was pointed out that the authority of the Treasury would ultimately be necessary for the acceptance of these charges, but it was not thought necessary to take any action for the present.

6. Mr. Wakely made a short statement to the Committee as to the action which had been taken by the Indian Government in regard to certain ships which had been sent on from India to this country. He understood that all the arrange- ments were being made by Graham and Company, the firm receiving the usual brokerage for their services. The Committee thought there was no objection to this arrangement continuing for the present.

7. A letter from Mr. H. E. Moss and Company, offering his assistance in con- nexion with the chartering of steamers, was laid before the Committee.

A letter from the Modern Transport Company, Limited, representing the existing scarcity of tonnage, and making suggestions as to the employment of prize steamships, was also laid before the Committee.

The Secretary was instructed to reply to both these letters.

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MINUTES.

THE SIXTH MEETING 'of the Committee was held at the Colonial Office on Saturday, the 5th December, 1914, at 11 a.m.

The following members were present:-

VICE-ADMIRAL SIR E. J. W. SLADE, K.C.I.E., K.C.V.O. (Chairman). MR. W. J. EVANS, Admiralty.

MR. G. L. BARSTOW, C.B., Treasury. MR. G. ROPER, Board of Trade. MR. H. W. MALKIN, Foreign Office. MR. L. D. WAKELY, India Office. MR. C. B. TENNYSON, Colonial Office. MR. T. H. HOLT, Crown Agents.

MR. R. A. WISEMAN (Secretary).

1. Ships detained at Cape Town.-The Committee considered three very "Hamm" and "Apolda," which had urgent telegrams on the subject of the 8.8.

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been received from the Union Government. It was decided to recommend that a telegram should be sent to the Governor-General, asking whether it would be pos- sible to discharge the " Apolda's" Java cargo at Cape Town, and also the whole of the "Hamm's cargo. If these arrangements could be carried out it might be possible to load the "Apolda " with the discharged Australian cargo from the Hamm and to place the "Hamm at the disposal of the Union Government, leaving the whole of the Java cargo at Cape Town to be taken on by another ship when available. The Union Government should also be asked to report what was the nature and amount of the cargo in South Africa for which tonnage was urgently required.

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It was pointed out to the Committee that authority had already been obtained from the Treasury and Admiralty for moving the three South African ships which are detained at Cape Town.

The Committee then discussed the provisional offer made by Mr. Allen Hughes for taking the 8.8. "Birkenfels on to Australia. It was decided that a copy of Mr. Hughes's letter should be sent to Waltons and Company, with a request that they would examine the guarantees offered by Mr. Hughes and report upon the legal position generally. It was thought that a representative of Waltons and Company should be asked to attend the meeting of the Committee on Thursday, the 10th of December, when it would probably be possible to deal with Mr. Hughes's offer in detail.

2. 8.8. "Fürth."-Mr. Holt informed the Committee that the cargo of this ship had nearly all been discharged, but that a difficulty had arisen with the owner of a consignment of concentrates of zinc who had expressed a fear that the con- signment might be seized by the Procurator-General. The owner in question was not prepared to pay any charges in connexion with the cargo until his apprehen- sion had been removed. Mr. Malkin undertook to mention the matter to the Procurator-General, whom he was seeing that afternoon.

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Mr. Holt stated that it would be possible to obtain very good freights for the He Fürth" if she were chartered for some other route than to the Cape. pointed out, however, that initial expenses would probably be necessary in order to put the ship into dry dock. The Chairman expressed the view that the Committee should in all cases insist upon chartering ships free of expense to the Government and making private firms liable for any incidental expenses. But he pointed out that the Committee could hardly proceed further at the present moment without obtaining authority from the Treasury. It was, therefore, decided to send in a short report to the Treasury explaining the present situation both in regard to captured and detained ships and asking for authority to proceed provisionally pending the consideration of the whole matter by the Cabinet. The Chairman undertook to submit a memorandum to the Committee for consideration at their next meeting. Mr. Roper and Mr. Malkin promised to inquire what stage had been reached as regards fixing the conditions of sale for prize ships. It was also suggested that Waltons and Company should be asked to draw up an agreement which would enable the Committee to charter prize ships on the assumption that all expenses were to be incurred by the charterer and that no liability should fall on the Government during the period of the charter.