CO129-585-6 Sino-Japanese conflict- shipping on Pearl River 7-8-1940 - 26-11-1940 — Page 19

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EXTRACT FROM CHINA SUMMARY NO. 8., Angusi, 1940.

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16.

(E) Pearl River.

The

During the whole of August the British steamer Fatshan, which in accordance with the Blunt-Okazaki Agreement (see Summary No. 2 of 1939, paragraph 40) plies between Hong Kong and Canton carrying passengers and stores for the foreign community in Shameen, was detained at Canton by the Japanese authorities owing to a dispute about pilotage fees. The Blunt-Okazaki Agreement states that a

reasonable" fee may be charged for pilotage. On the 1st February last the Japanese introduced a new scale of pilotage fees roughly seven times as high as the previous one. Messrs. Butterfield and Swire, the owners of the Fatshan refused to pay, but the ship continued to sail. matter was under discussion between His Majesty's Consul- General and his Japanese colleague when the Japanese naval authorities suddenly intervened and announced that unless full fees were paid by the 31st July no pilot would be provided for the Fatshan, which would thus be unable to sail. His Majesty's Consul-General was unable to get the Japanese authorities to withdraw from this position and the Fatshan remained at Canton. The Hong Kong authorities accordingly treated the Blunt-Okazaki Agreement as being in suspense and withheld permission for Japanese transports to call at Hong Kong.

17. After prolonged discussion the Japanese authorities agreed on the 30th August to a solution whereby the full

amount demanded for pilotage for the period the 1st February -the 31st July was paid to them on the understanding that immediate consultation should take place between the British and Japanese Consuls-General as to what the Blunt- Okazaki Agreement meant by "reasonable" pilotage fees, any agreement reached to be retroactive in effect. Messrs. Butterfield and Swire were also required to sign a vaguely worded "apology" as regard certain complaints by the Japanese naval authorities. The Fatshan was then permitted to resume her sailings.