CO129-464 - Public Offices - 1920 — Page 472

13.

Inclosure in Manila No. 20 of May 17, 1920.

Sir

:-

BRITISH CON SULATE-GENERAL,

MANILA.

460

May 17, 1920,

With reference to my telegram No. 2 of the 15th. instant regarding the possible application of the United States Coastwise Law to Trade and Passenger service between the United States and the Philippine Islands I have the honour to report as follows :-

On rare occasions there have been tentative suggestions of such an extension of the Regulations already existing locally in the United States and these Islands, for which there is a precedent in similar regulations in force between the United States and Hawaii; of course the extension to the Philippines would be a more important matter owing to the greater distance. Until recent- ly, however, the question was not a large one owing to the small tonnage of American shipping available.

The suggestion met with favour amongst neither the Filipinos nor the American merchant communities. There are no Trans- pacific lines owned or controlled in the Philippines where, however, there are large Import and Export interests.

These feel that the extension of the Coastwise Laws, in- volving a monopoly of the carrying trade for American shipping, would certainly mean increased freights,

The Filipino and other exporters of local staples, Hemp, Copra, Sugar, Tobacco, &c,, much of which goes to America, feel that this would prejudice their interests; while similarly, as American products, favoured by the absence of Customs Duty, are shipped here very largely, American and other Importers, Retailers and Consumers fear the inevitable increase of the already high

Excellency,

H.B.M. Ambassador

WASHINGTON.

prices/