CO129-328 - Governor Nathan - 1905 [1-6] — Page 94

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question of principle, viz:- the refusal of this Goverment

to accept as meeting the requirements of our Ordinance the

Passenger Certificate issued by the French Consul at Canton.

I annex a copy of a minute dated the 16th. instant by the

Attorney-General.

One losure 2

Enclosure 3.

With regard to what M. Liébert terms the

circumstances and facts of the case, viz:- the allegation as

to subsidised competition, I annex a copy of the Convention

under which the subsidy is given. It does not appear material

that the subsidy amounting to nearly 23,500 per annum for

each of these boats should be termed a postal and not a com-

mercial one and though no doubt the Chinese owned steamers

are largely responsible for the cutting of rates between Canton

and Hongkong, I see no reason to doubt that the competition

of the French line, which would probably not exist but for

the subsidy, materially affects the receipts of the Canton

and Macao Steamboat Company.

6.

I have thought it advisable to bring the

whole matter including the French Consul's Memorandum to your

notice in case reference is made to you by the Foreign Office

with regard to it.

I have the honour to be,

sir.

Your most obedient

Humble servant,

Mr. Water

Governor, &c..

WED