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actually for the account of the Government, and what were known as Blue Book rates were to be the basis of remuneration. The Government confidently looked to the owners to conduct the business with as much zeal and care as if their own interests alone were still involved,
The scheme included all lines operating between Hongkong and the United King- dom and all the ocean going ships belonging to the Indo-China and China Navigation Companies, but it did not apply to the smaller lines operating in and out of Hongkong along the China Coast.
The Indo-China and China Navigation Companies' ships were requisitioned under this scheme in the early summer of 1917, and they were run under it on Far Eastern trades by their owners on behalf of the Imperial Government until the end of the war: with the exception that such of their vessels as could possibly be spared were taken as occasion required for the direct use of the Imperial Government, and towards the latter part of the war only a small portion of each Company's fleet remained upon the Coast.
The renumeration payable to these Companies was at Blue Book rates with eastern allowance, and it was converted into dollars, at first as to one third, and later as to one half, at 2, and as to the balance at the rate of the lay.
2. The taking of vessels from Far Eastern trades for the use of the Imperial Government, on full requisition as listinct from Liner requisition, had been going on since the commencement of the war, and by the beginning of the year 1917 the number of British vessels trailing to Hongkong was very materially diminished. The situation was carefully watched at home, and on the 11th April. 1917, the Admiralty telegraphed that, while it was imperative that every possible ship should be used to relieve the home tonnage position, the Admiral, in requisitioning vessels, was to consider any requirements of the Colony which were absolutely vital, and he was authorised to requisition at the request of the local Government small British tonnage necessary to meet its requirements.
3. In May, 1917, a Committee was appointed by the Government "to consider what are the vital requirements of the Colony and what British tonnage is necessary to meet such requirements". The original members of the Committee were :--
Hon. Mr. C. E. Antou Commander Beckwith, .N.
Mr. S. H. Dodwell
Mr. G. T. Edkins
Hon. Mr. Lau Chi-pak
Hon. Mr. R. Shewan
.Messra. Jardine, Matheson & Co., Lt‹l.
...Harbour Master.
Messrs. Dodwell & Co.
.Messrs. Butterfield & Swire.
.Cheong Yue Steamship Co., Ltd.
Messrs. Shewan Tomes & Co.
Fleet Paymaster W. D. Sirratt, R.8.
This Committee, with which the Government was in constant touch until the end of the war, did most valuable work on behalf of the Colony.
4. In a telegram lated the 5th July, 1917, the Hongkong Government was informed that the Shipping Controller had appointed Mr. G. K. Nuttall of Messrs. Butterfield & Swire, and Mr. R. Sutherland of Messrs. Jardine, Matheson & Co., Ltd., as a sub-com- mittee to present him in the Colony.
5. In a preliminary report on the local situation, dated the 4th July, 1917, Sir Ilenry May wrote to the Secretary of State for the Colonies:-
"I need hardly emphasize the point that the Commercial Community of this Colony is anxious to assist His Majesty's Government in every possible way. Their views on the subject of the phrase vital requirements are, T think, in the special circumstances of this peculiarly situated Colony, sound, and they are content to leave the question of requisitioning in the hands of the Controller of Shipping in Loudon, who has the benefit of the advice of a representative Shipping Committee.'
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6. In a telegram lated the 12th October, 1917, the Secretary of State for the Colonies referred at some length to the proposed appointment of Colonel Thomson, Shipping Adviser to the Indian Government, as Agent of the Shipping Controller in charge of all lines with head-quarters in the Far East, and he added;
"Following scheme suggested as likely to secure most economical and advant- ageous use of tonnage available. All seagoing vessels except those already requisitioned belonging to shipping companies registered in ludia, Straits Settlements, and Hongkong would be requisitioned from fixed date. Thomson's control so far as concerns finance will extend to all such vessels except those registered in Cuited Kingdom which are already under liner requisition scheme. Vessels will be left to owners to be rue as if for thein- selves but actually for Indian or Colonial Governments and Thomson's functions would be those of General Manager. Owners would credit full earnings and debit charges after allowances for rebates, commissions, etc., and would be paid hire at rates paid in respect of vessels on full requisition subject to adjustments necessary on account of charges payable by owners themselves. Balance of profit if any would be payable to Government of Judia or Colony. Owners would be reimbursed net cost of maintenance of organisation of officers and staff and would also be entitled to charge customary payment to agents. Do you see any objection to proposals? Despatch follows by mail and detailed scheme will be communicated in dine course but you should not wait for despatch or scheme before replying.” The Hongkong Government, with some hesitation and after further correspondence with regard to details, acquiesced in the proposals made.
7. In the meantime, owing to the constant withdrawals of British steamers from the China Coast, the local tonnage situation had become considerably more difficult. At the end of October, 1917, it was decided by the Shipping Controller to withdraw six further vessels, including the S.S. Burrumbert, regarding which the Commodore wrote, under late the 3rd November, 1917 :--
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I suggest that in the event of Burrumbect being requisitioned the Kailan Mining Administration should, if necessary, charter tonnage (to replace her) from vessels on the coast not suitable for Imperial work, but which are suitable for coal carrying".
The Vital Requirements Committee wrote ou the same date:-
"In view of the necessity for further requisition for Imperial needs elsewhere we are of the opinion that the vessels named can be spared but we desire to qualify this opinion to the extent that as the Burrumbee is engaged in coal transport connected with the Colony it may be necessary to consider ways and means of replacing her if the coal shippers concerned can show the necessity for maintaining a ship in her place, in which case we suggest that assistance should be given in the provision of another vessel", and at a meeting of the Committee held on the 20th November, 1917, the follow- ing minute was recorded : ---
In view of the importance of supplying the 'olony with coal at reason- able rates it was agreed to recommend that the Wollowra, a boat unsuitable for Admiralty requirements, be requisitioned to
take the Burrumbeet's place.
On the 24th November, the Committee wrote:-
"The Committee is in agreement with the Government that it is essential in the interests of the Colony that coal at a reasonable price shoull be avail- able and it is suggested that the steamer Wollount be requisitioned to take the place of the Burrunbrel, since the Wollowra is declared unsuit- able for Admiralty requirements and moreover is not included in the liner requisition scheme. As regards management of the vessel it appears suitable to place her in the hands of the Kailan Administration to run similarly to the Barrumbeet under guidance of the Admiralty Authorities."
The Government wrote accordingly to the Commodore on the 28th November, 1917 :— "I have the honour to request that you will be so good as to requisition ou behalf of this Government the S.S. Wollowra, to take the place of the S.S. Barrumbeet.
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