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His Majesty's Consul-General at Canton, whose opinion I have already quoted, also considered that the enforcement of the Regulations would effectually drive the British flag out of the trade, and expressed the view, in which I am inclined to concur, that the functions assigned to the Minister in Regulations 45, 48, and 49 should be exercised provisionally by the Consuls subject to an appeal to Peking.
The Kiu Kiang Report (No. 5 to the Foreign Office of the 18th June, 1907) quoted the views of Messrs. Butterfield and Swire, the largest shipping firm in China, who objected entirely to the proposed legislation as likely to prove a serious handicap to British shipping in its competition with that of other flags.
The accompanying Table which has been prepared by the Acting Commercial Attaché will show the extent and diversity of the interests involved. Our share in the inland steam traffic, which is about one-third of the whole, was represented last year by over a million of tonnage entered and cleared, and was distributed in varying pro- portions over nearly all the Treaty ports, Canton and Newchwang, each with about a quarter of a milliou, being the largest participants.
The problem seems to be how we can best regularize the status of this class of vessels as British ships without imposing on them disabilities which will prevent them from competing with vessels of other nationalities engaged in the same trade. Two main solutions of the question have been proposed, one by the Board of Trade in 1886 for the establishment of a modified system of registration by His Majesty's Consuls at the Treaty ports, and the other, which was also subsequently adopted by the Board, that the existing machinery at Shanghae should be utilized, and that the Registrar there should be authorized to issue certificates of registry on the application of owners of launches sent through the Consul of the port at which they were plying,
Sir H. de Sausmarez seems to bave independently come to the conclusion that a workable scheme is best attainable on the lines of the latter alternative, and his suggestions appear to be well calculated to effect the object in view.
It seems, therefore, that the best course for dealing with the whole question is that the instructions contained in the last paragraph of your despatch No. 200 of the 15th May last, should be extended so as to include the framing of Rules for British launches plying under the Inland Steam Navigation Rules at all the ports, and that the Judge of His Majesty's Supreme Court should be empowered to draw them up in consultation with this Legation and with the Consuls at, say, Shanghae, Canton, Hankow, Newchwang, and Amoy, the ports which are most likely to be able to supply information on the subject. It would probably also be advisable to consult the larger shipping firms, for it is quite conceivable, as Sir H. de Sausmarez points out, that some of the provisions of the Merchant Shipping Act will prove too onerous for this class of vessels.
Should this recommendation be accepted, I would beg the favour of a telegraphic reply as Sir H. de Sausmarez proceeds on leave of absence, I believe, next spring, and it seems desirable, in view of the situation at Canton, that the matter should be in train as soon as possible.
I am sending copies of this despatch to Sir H. de Sausmarez and His Majesty's Consul-General at Canton.
Sir,
I have, &c.
(Signed)
J. N. JORDAN.
Inclosure 1 in No. 1.
Sir J. Jordan to Sir H. de Sausmarez.
Peking, July 2, 1907.
I HAVE the honour to transmit to you herewith copy of a despatch which I received in February last from His Majesty's Consul-General at Canton, on the subject of the existing state of matters with regard to launches flying the British flag, and running under Inland Water Steam Navigation Rules on the Canton and West Rivers. You will observe that Inclosure No. 3 in Mr. Mansfield's despatch is a set of Regulations which he proposed to enforce locally with a view to involving order out of the chaos which appeared to reign there with regard to the launch traffic.
I replied to Mr. Mansfield on the 4th March that he might use his discretion in putting the Rules into operation locally as a provisional measure, but that the penalties mentioned in Rules Nos. 3 and 5 could not be enforced without the sanction of His Majesty's Government.
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At the same time I referred the matter to the Foreign Office, and I have now received a reply, copy of which I also have the honour to inclose, in which, while fully recognizing the excellence of the spirit of Mr. Mansfield's proposed Rules, Sir Edward Grey informs me that he does not propose to sanction them, and instructs me to refer the whole question to you, and request you to consider, in consultation with Mr. Mansfield, and report on the best steps to be taken, and to draft any Rules which you may think desirable to deal with the local difficulties connected with the launch traffic on the Canton and West Rivers.
I should be greatly obliged if you would consult with His Majesty's Consul- General at Canton and furnish me at your convenience with your observations on the whole question. I have instructed Mr. Mansfield to put himself in communication with you on the whole question, and to furnish you with the necessary papers to enable you to form an opinion.
1 have, &c. (Signed)
(No. 34.) Sir,
Inclosure 2 in No. 1.
Consul-General Mansfield to Sir J. Jordan,
J. N. JORDAN,
Canton, July 17, 1907. I HAVE the honour to acknowledge receipt of your despatch No. 35 of the 2nd July transmitting copy of a despatch from the Foreign Office, dated the 15th May, on the subject of the launch traffic on the Canton and West Rivers. You further desire me to put myself in communication with Sir Havilland de Sausmarez on the whole subject of local Regulations for the above traffic.
Before doing so I think it my duty, in justice to my predecessors here and myself, to suggest for your consideration that there appears to be a misapprehension on the part of His Majesty's Principal Secretary of State as to the intention and scope of Inland Waters Steam Navigation Regulations.
These Regulations were the result of negotiations carried on in 1899, between Sir Claude MacDonald and the Chinese Government. I was at that time in charge of the Consulate here, and I think that the correspondence which passed on the subject with the Legation shows conclusively that Sir Claude MacDonald had no intention whatever that the launches plying under the Regulations should be registered as British slips at Shanghae, or be governed by the Merchant Shipping Act. It is not for me to criticize the view taken by Sir Claude MacDonald, but I might here mention that if it is desired to put an immediate and effective stop to British launches now plying under the Regulations, it is only necessary to lay down that they must conform with the provisions of the Merchant Shipping Act. The result would be that within a week all the Inland Water launches now flying the British flag would have changed their nationality.
As showing Sir Claude MacDonald's ideas on the subject of the Iuland Water launches, I have the honour to refer to my despatch No. 7 of the 20th August, 1898, and his reply No. 13 of the 7th September, 1898. From these two despatches I make the following extracts:--
Query. "I presume that Sir N. O'Conor's despatch No. 4 of the 3rd February, 1886, providing for the issue of Consular certificates of ownership of steam-launches will apply in the case of the new Regulations."
Answer."You should, of course, satisfy yourself before issuing a certificate of ownership to any launch or small steamer that the statement of British ownership is correct.'
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Query. Do you consider that in the case of launches under the new Regulations, the Port Regulations (ie., Port Regulation No. 4 re the flying of the red ensign) should be adhered to, or leave granted to fly the red ensign on the launches ?”
Answer-I believe it is the practice of launches registored in the manner described in Legation despatch No. 4 of the 3rd February, 1886, to fly the red ensign in the ports of China, and this I should say was contemplated when those instructions were issued. So long as the practice is confined to the waters of the port and the inland waterways, it may be tolerated."
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