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Copy. Let
Shanghai,
23rd June 1917.
282
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Hongkong has formed a Vital Requirements Committee to
enable the Requisitioning Authority to determine the amount
of British tonnage. required by Hongkong for its vital require
ments.
The Government and the Commodore are both in favour of
a local Shipping Control Committee and the former strongly
in favour of it with effective control of the balance of
British shipping in these watera.
If the words underlined Bean all steamers trading in
China waters we view with apprehension the claims of British
shipping managed from Shanghai or other China ports being
judged entirely from the standpoint of the vital require-
ments of the Colony of Hongkong, and the exclusive need for
protection of its industries.
China is dependent upon Foreign tonnage for the car-
riage of the bulk of her interport trade and the British Companies have secured an important control of it notwithstand ing the keenest rivalty especially from Japanese tonnage.
Should British Companies be forced to relinquish these trades it will offer to Japanese Companies opportunities to foster them and to form friendly relations with Shippers,
who for the sake of their business must assist the Japanese to acquire facilities at loading and discharging ports which the British Companies have done their utmost over a long period of years to retain to themselves at great financial
cost.
ir E. H. Fraser K.C.M.G.,
H.B.M's Consul General
Shanghai.
Once
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