CO129-458 - Public Offices & Others - 1919 — Page 455

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accordingly, a circular letter in the attached form being addressed to all owners, under date the 4th February.

2.

Mr.Long in his Despatch No.252 of the 24th October, 1918, referred for the consideration of the HongKong Government certain representations made by Messrs. John Swire and Sons, Limited which were to the effect that the ships under the Hong Kong scheme were given preferential treatment by comparison with the ships of the China Navigation Company. It will be seen from the enclosures under the ninth paragraph of Mr. Severn's Confidential Despatch of the 1st November that this question of the differentiation between trampt ——— and liners was referred by the Hong Kong Government to the Agent of the Shipping Controller in Bombay, who replied that the matter had been settled in Landon. Messrs. John Swire and Sons' arguments would seem to be quite untenable. As they correctly state, the vessels are old and of an inferior class, and they were not considered seaworthy enough to be taken on full requisition; and Sir Henry May pointed out in paragraphs 10 and 11 of his Confidential Despatch of the 21st. May, 1918 for this very reason the cost of upkeep was pro- portionately heavier and special concessions should be granted. The ages of these vessels vary from twenty-seven to forty-three years, and as they are not kept in good condition constant repaits are necessary, which have to be executed at a cost which has increased enormously during the war. It must be remembered that the Chine Navigation Steamship Company is closely associated with the Taikoo Dockyard, and it is very possible that they do not pay the prices charged to outside owners.

3. The Ministry of Shipping, in their letter enclosed with Mr. Long's Despatch, point out that the revision of tramp rates in the United Kingdom was necessary largely on account

of the cost of insurance. In the case of the locally controlled tramps marine risks can as a rule be insured against for "total loss only", at rates between 10 and 15 per centum, it being

impossible