CO129-451 - Public Offices - 1918 — Page 503

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jas to provide the essential coal, iron and steel' ship-plates sections, and other steel and other essential steel iron coal and coal products necessary for the present and future supply of the NGKONG SHIPBUILDING YARDS end the M.VAL BASE OF HONGKONG and also to supply from its own yard (from the yard working in conjunction with the blast furnaces and steel convertors and plate and bar mills at the steel works site) such ships as are necessary or mi it be necessary for the building up of the ritis ercentile Marine in such fashion as to render HCNGKONG independent of any other

and outside source of supply, and that :-

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(e) There is both in the established yards in Hongkong and in other British Yards in China, as well as

in the delta of the west, Pearl and North rivers a very

considerable supply of efficient labour that could be operated at all times to better advantage than Home labour for the production of the steel iron and similar requirements of the existing British China yards, and that:-

(f) This being a matter essential to the well- being of Hongkong and of the Empire generally, and both of the firms named having had experience of the development

of great mining ventures in Chine as regards Messrs Bewick Loreing & Co, and of the building, up of great steel and iron and shipbuilding plants in undeveloped country, as regards wir William Beardnore Ltd, and as both of them are willing to

work this matter in conjunction with the Imperial Home government and or the Hongkong government, whereby arrangements may be made to protect the British government's own supply of steel and iron to the Naval Base of Hongkong and further to reach an agreement as to what prices etc and terms of supply shall rule in supplying private British China yards

with their essential needs of cal steel and iron

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British government should through its colonial and foreign Offices acting together with the Heads

and representatives of the Firms named, together with the Treasury (Issue Committee) and the en Power and Shipping Boards endeavour to reach an agreement as to how support can best be given: as to the manner and method of control to be exercised: and all essential details settled so that there should not be at any later stage in the proceedings and or negotiations any

doubt as to exactly the course of procedure to be followed and the whole of the government departments concerned should act cohesively one with the other to bring this about, it being evident that with the political

and economic situation existing in China today it is totally impossible for any British firm or group of firms to undertake the business in such a manner as to

give to the Empire the most desirable service in such an establishment unless in the first place the group is worked with from the commencement of the proceedings by the government of Britain putting forward its basic ideas for such working and secondly giving the group df firms interested a definite assurance that te group will receive equal help from the Pritish government in the accomplishment of its desires as is afforded Japanese groups and individuals by their government.

Finally I am convinced that if H..'s government would act on the lines laid down a semi-official or privately controlled establishment might be set up in KUANGTUNG fully controlled politically and militarily by HONGKONG that would render that Colony capable of sustaining itself for a definite period without

dependency

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