CO129-476 - Acting Governor Claud Severn & Governor Sir Stubbs - 1922 [8-12] — Page 158

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this Government could not be entertained because, arong other reasons, of an assurance given by the Shipping Controller to the Indo-China Steamship Company and the China Navigation Steamship Company that the financial arrangements under the Hongkong Scheme would be no more favourable to owners than those adopted under the Imperial Scheme.

4.

Messrs. Deacon, Looker, Deacon and Harston refer to their letter of the 19th April, 1918, in which they queried the legal authority under which this Government was acting. The reply thereto, dated the 14th May, 1918, is set out in the newspaper report which forms enclosure (c) among the documente new transmitted.

5.

The petitioners refer to negotiations which took place between the first and second reading of the Ordinance. Certain informal conversations took place in the course of which it was agreed to place before the Unofficial Members of the Executive and Legislative Councils a proposal that, as an act of grace, half of the

proceeds of the Control Scheme should be paid over to the

owners. It was pointed out that, even if the Unofficial

Members of the Councils concurred, it was improbable that

the Imperial Government could accept a proposal which

involved discrimination in favour of the controlled ships

as against the vessels of the Indo-China and China

Navigation Companies. The Unofficial Membere unanimously

refused to entertain the suggestion, on the ground that it

would be unfair to make this discrimination.

6.

This Government does not accept as correct the figures which are given in paragraph 16 of the petition, which forme enclosure (a) in the Solicitors' letter.

7.

Messrs. Deacon, Looker, Deacon and Harston say that they continually pressed for the granting of the

fiat