CO129-513-5 Coastal and river trade- prevention of smuggling and illicit trading 15-10-1928 - 14-12-1929 — Page 19

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(b) Purchase by Chinese of vessels of principal

Japanese and British shipping companies. For this

XXXX

X

purpose Sino-foreign companies would be formed, 51%

of share capital belig Chinese and vessels flying

Chinese flag.

2. As regards (b) I enquired whether he con-

sidered it likely that Chinese shipping interests would

be able or willing to purchase such interests in foreign

companies citing in particular present deplorable finan-

cial position of China Merchants Steamship Company.

X

He replied that this was the principal difficulty

but he thought some arrangement could be found on the

lines of hire purchase supported if necessary by gov-

ernment subvention.

X

X

Possibly solution would lie along lines of com-

bination of alternatives (a) and (b).

3.

X

In reply to my enquiry as to whether it was

proposed to prohibit foreign vessels proceeding to

such places as Hankow he replied that all ports access-

ible to ocean shipping would remain open for direct

trade from a foreign port.

Chinese inter port trade as well as inland naviga-

tion would in any case be restricted to vessels flying

Chinese flag.