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that these three vessels should remain available for the
miscell meous requirements which are usually served by a much larger number of vessels. It was accordingly decided to watch, but not to interfere with the arrangements made by the omers, and the charters were allowed to stand. It is understood that in 1918 tho S. S. "Castlefield" entered Singapore three times, and the 8. S. "Manapouri" four times. The S. 8. "Brisbane" was running regularly
to Hongkong.
(e). The S. S. "Ching Chow" is omed by the Green Island Cement Company of Hongkong, and her special trade is the carrying of limestone from Haiphong to Hongkong for the account of the cwners. The Hongkong Government diverted her to curry coal for its own and Admiralty account.
(f). The S. 8. "Van Vaerwijk" has not at any time bean under the control of the Hongkong Government.
10.
11.
It must be concluded that the protest made by the Covernment of the Straits Settlements was founded upon complete misconception of the policy adopted by the Hongkong Government and of the steps taken to carry it into effect. Tha ono aim has been to use the tonnage available to the best possible advantage, and the allegation that essential services were deverted for speculative ventures is entirely without foundation.
On the 3rd. Fabruary the Secretary of State telegraphed instructions regarding the method of calculation of commission payable to Managers and other third parties. Mr. Long had telegraphed the outlines of a scheme on the 25th. way, 1918, but he stated that the exact method of ascertainment was still under enquiry; and accordingly no steps were taken in the matter. The Hongkong Government at the commencement of the control had undertaken to pay a fixed commission of 5 per centum, for the reasons given in Sir Henry May's telogram of the 17th. April,1918, and in paragraph 10 of his Confidential Despatch of the 21st, iny, 1918; and it was decided to take no staps with regard to the instructions of the 3rd. February, firstly because of this under-
-taking
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