CO129-585-6 Sino-Japanese conflict- shipping on Pearl River 7-8-1940 - 26-11-1940 — Page 16

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two vessels, so much less when there are three or more vessels.

(c) Pending agreement as to the new scale, fees will be paid to myself at the end of each month by the British company on the present scale, and five-eighths of the total fees on the present scale will be paid over to you by myself, subject to adjustment when a settlement is reached. Unless agreement is reached by September 30th as to what constitutes the term "reasonable pilotage fees" under clause 5(e) of the Blunt-Okazaki Agreement, it is possible that that Agreement will be declared in suspense, after (say) 14 days notice, on both sides until we can reach a settlement as to the new scale of pilotage fees.

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(a) Lastly, in the course of discussion, there was mention more than once of a proper appreciation by myself that Canton was within a zone of naval and military operations. I would ask equal appreciation that Hongkong is nowadays a zone of naval and military operations.

I have, etc.,

(Signed)

A.P. Blunt.

CONSUL-GENERAL.