CO129-448 - Governor Sir May - 1918 [4-6] — Page 431

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+ CONFIDENTIAL.`

Sir,

REC

C. O

38972 28

HEG 12 JUG 18

GOVERNMENT HOUSE,

HONGKONG. 6th. June, 1918.

With reference to your Confidential Circu-

-lar of the 22nd. March, 1918, on the subject or the Govern-

-ment War Risks Insurance Scheme, I have the honour to inform

you that though the scheme started at the outbreak of war was

pretty generally made use of in London and Home ports it was

found too difficult to work from Hongkong and the Far East generally but in 1915 there was very little difference bet-

-ween the Government and market rates.

2.

In 1916, however, there being a marked

difference between the two rates, the Union Insurance Society

of Canton at Hongkong made arrangements whereby shippers could

effect insurance with the Government in London through the

Society's branches,

The new method of rating difference pre-

-miums for different voyages instead of a flat rate is known

to all shippers and Insurance Companies.

3.

I am informed that the Government achane

would be of far greater use to local shippers if policies could be issued and claims paid in Hongkong, and if it could be arranged for the Colonial Government to set up a branch of the War Risk Insurance in Hongkong. The Union Insurance

THE RIGHT HONOURABLE

WALTER LONG, M.P..

&c..

&c.,

&c...

Society