CO129-448 - Governor Sir May - 1918 [4-6] — Page 346

344

2.0.

11065 /8.

Sav 8943

Sour

-863-

heavier than in the case of vessels, such as those of the Indo-China and China Navigation Companies, on the regular

lines. I was awore, when I sent my telegram of the 9th, March, that expenses connected with repairing and running were an owners' risk, if the owners were prepared to run the vessels; and, in order to offer the omers a sufficient inducement to do

30,

I accepted the advice of the Control Committee to grant the terms stated in the telegram which I addressed to you on the 17th. April. My further recommendation in that

telegram, that payment should be made half at 1 and half at the rate of the day, was based upon a careful review of figures and accounts put forward by the local owners.

I am satisfied that in the case of the ships now in question the grant of this additional remuneration is fully justified.

11.

I may refer in this connection to the further correspondence noted in the margin. It appeared to ternor's telegram of 17th. February, 1918.) me that, if omers were to

stary of State's telegram of 2nd March

1918.

arnor's telegram of 9th. March, 1918, ratory of State's telegram of 20th. Ye 7.9 March, 1918,

-13472.

72097)

receive no better terms than

Blue Book rates simply, the vessels would come on the

hands of this Government, which had no machinery for running them, and the blony would become liable to a certain risk that the venture would not be a successful one. As however the Imperial Authorities were unwilling to accept financial responsibility, I decided to offer terms which would attract the owners, although these terms had not been definitely arranged at the time in connection with the Imperial scheme.

12.

War insurance was duly affected upon a value of £979,000, at a rate of 15/-%, for a period of three months. The question of renewal will be reviewed in light of the position at the end of that period. According to present

indications