CO129-458 - Public Offices & Others - 1919 — Page 450

grams SHIPMINDER, VIC, LONDON,"

Any further communication on this

object should be addressed to—

The Secretary.

Ministry of Shipping,

St. James's Park.

London, S.W. 1,

nd the following number quoted

MINISTRY OF SHIPPING,

80647/18.

436

June, 1919.

C.O

sir,

37032

[RECO

REG 23 JUN

I am directed by the Shipping Controller

do

to acknowledge the receipt of Mr. Grindle's letter No.30540/ of the 11th instant enclosing a copy of a Confiden- tial despatch from the Officer Administering the Government of Hong Kong, dated the 7th April, to- gether with a copy of a report by the Chairman of the Liner Requisition Scheme operated by the Colonial Government.

2.

3.

The Controller regrets that the Local Committee did not consider it practicable to deal with the question of Commission payable to the Local Managers on the lines adopted under the Imperial Scheme, as explained in the letters from this Department of the 17th May 1918 and 28th January 1919.

An assurance was given to the Managers the Indo-China Steamship Company and the China Navigation Steamship Company that the financial arrangemente under the Local Scheme would be n favourable to Owners than that adopted under t! Imperial Scheme, and the Controller foreseea or difficulty in insisting on the restriction of fores payable to the Managers of these Lines, if their competitors on the China Coast are allowed to reta Commission on the full commercial earnings of the. vessels. He also fears that unless he can insist o the restriction in these cases, he would be seriously embarassed in dealing with the Managers in other trades.. who are entitled to Commission under the Imperial Scheme.

4.

It is observed that in the original circular letter issued by the Colonial Government in March 1918 it was proposed that the Commission to K~~gore should be calculated on the net earnings of the vessels, but it would appear from subsequent communications and from paragraph 11 of the Committee's Report, that this proposal was not adopted and that Commission at the rate of 5% on the full commercial earnings has been paid.

Б.

Sir Joseph Maclay will be glad if, before a Report is laid upon the table of the Legislative Council, the further commente of the Local Committee on this question may be obtained, and if it is clear that the basis of Commission under the Local Scheme is more favou”-*- * Managers than that under the

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