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Reference is made in the enclosed letter to an amendment to Merchant Shipping Consoli- dation Ordinance, 1899, under Notification No. 169 whereby License fees for cargo junks and lighters were increased 100 per cent.

My Committee would beg you to supply them with the information necessary for the reply to the query.

I am to request you to be good enough to thank His Excellency for the opportunity accorded to my Committee for commenting on this subject.

Hon. F. H. MAY, C.M.G.,

Colonial Secretary.

I am, &c.,

E. A. M. WILLIAMS, Secretary,

Copy.

HONGKONG, 23rd April, 1908.

SIR,- We, the undersigned, agents and representatives of British Lines and owners of vessels visiting this port, beg to bring to your notice that we consider the scheme as set forth in the Colonial Secretary's letter of the 11th March, addressed to the Chamber of Commerce, which has recently been published, distinctly prejudicial to the interests of shipping, which is the mainstay and livelihood of the whole Colony. So much has been said in past years by your Chamber on this particular point that we think that it is hardly necessary for us to particularise once more the many arguments against the taxation of shipping.

In view of the fact that the proposed refuge is to be erected to protect lighters and native cargo boats in case of a typhoon, it appears to us that there are many concerns closely allied to shipping on which we think some part of the cost of the proposed work might fall. As an instance, we consider that Underwriters are as much concerned as ship owners, inasmuch as it is of great value for them to know that craft will have a place of refuge in the event of a severe storm. We therefore consider that the contribution towards the expenses should be made more general and that the onus should not fall too much on the shoulders of the shipping trade.

As however the shelter is in the interests of the welfare of the Colony, and the shipping trade generally has a certain interest at stake, we think that a temporary increase in the light dues would be agreed to by ship owners without opposition provided it were based on a somewhat modified arrangement as regards payment.

During 1907 the registered tonnage of shipping visiting this port is put down at roughly 10,300,000 tons, we therefore think that if the tonnage dues are increased by cent per ton and the cost of the work spread over a longer term of years (than that suggested) it would be more equitable and the distribution of the payment would be mach better divided.

We would point out that of late years the tonnage of steamers has materially increased, it however does not follow that more cargo is being brought in or taken away from the Colony. On the other hand the dues, owing to the size of the vessels, are considerably increased.

We have made no mention regarding the proposed site of the shelter as we consider that this is best left to practical local experts with whom you are no doubt consulting. We however venture to think that the cost of the works as mentioned in the Colonial Secretary's letter is somewhat extravagant and trust that before the scheme is finally sanctioned a more economical and at the same time an equally efficient refuge can be evolved. You are so fully cognizant of the depressed state that shipping is in at the present time that it is hardly necessary for us to draw your attention to this fact, but as such is the case we trust that money will not be spent unnecessarily, as the times seem to call for economy in expenditure in every direction.