CO129-448 - Governor Sir May - 1918 [4-6] — Page 12

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TELEGRAM from the Governor of Hong KonPR $8jre- tary of State for the Colonies. (Received Colonial Office 12.10 .p.m. 6th April, 1918.)

adny. 72361.

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With reference to your telegram of 22nd March am of opinion that by far the most satisfactory incen- tive to extension of local shipyards would lie in a guarantee from His Majesty's Govament for supply of plant, placing of order for standard ships and provision of material for construction of them. With such

guarantee, Taikoo yard, which can readily raise capital sum locally, probably will proceed with extension. Without such guarantee immediately utility of extension from an Imperial point of view would be largely discounted. Hong Kong Whampoa Dock Company are already on their own initiative making large extension, see my despatch of

21st April 1917 No.128 as a business venture in antici- pation of post war demand for ships. It would doubtless do mote under suggested guarantee. I consider that there should be no discrimination between Taikoo Yard and other competing local yards capable of building ocean steamers. I will add that this Government is not in position to formulate conditions under which grant could be made nor to give assistance in the supply of material and plant.

MAY