CO129-585-5 Sino-Japanese conflict- shipping on Pearl River 3-1-1940 - 25-8-1940 — Page 102

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ENCLOSUKE IN CANTON DESPATCH No. 5 of 1/3/1940 to Comm. Counsellor, shanghai.

sir,

CANTON HONGKONG SHIMMENTS

For your kind information we report the following:

In early January, despite what we understand to be a limitation of the ss "Patshan" to the car.ying of passengers and Shameen stores, etc., we unayeu tu obtain Japanese permission to ship 5 packages of sundry cargo to liongkong by this steamer. This cargo consisted of small engineering supplies, originally destined for Hankow by rail and imported into Canton in 1938 before the fall of the City. We then followed up with an application to get away boy paper, similarly uestined originall, for Hankow. Alter two weeks negoti: tion with the Japanese Naval officials, this alication for shipment per "Fatshan" was finally turneu uown on the 19th inst. we being auviseu, incidentally, to be "patient" as the "River would soon be oxeneu".

As a matter of pure Interest we then investigated possiblities of getting the cargo in question away by one of the Chinese transportation companies which have been operating a tow service between Canton and liongkong • These services as you will be aware have been operating for some time by tucit agreement with the Japanese, and apparently the approval of the liongaong Government. reviously we should have rulcu this methou as out of court owing to the prohibitive freight rules charged and attendant risaS. Our enquiries however revealed that these Low-services have since become more organizeu, under the superintendence of five separate concerns, and the rocedure is roughly as follows, according to the informationwe have gaineu.

Let us say the agreca value of car¿o to be shipped is Kip1, 000.U.

A lux of lb, is levied on this value (since reduced to b for Kerosene on the Import side) quite inue,enuently of the Chinese Customs who are apparently side-steppeu. charged at Klipz.00 per 100 catties.

Freight is

For export cargo, the River Blading has to be hunutu to the Yokohama Lyecie or Taiwan Bank in Canton, who pass bone to their songsong office. Consignees in Hongkong must then deposit the value of the goous, (say ..K/1,000.00) in the ban.. concerned in Hongkong to reacem the B/Lauin, and obtain delivery of the cargo. This money would then be renuered to Canton b, the bank and refunueu to shippers, less 1 remittance fee, in currency at Bank's option, maybee in KH, but most probably in Military Yen at a rate presumably decided upon by the bank.

W. Stark-Toller, Esquire, 0.B.E.,

H.B.M. Consul-General,

CANTON.

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