Sessional_Paper_1923 — Page 64

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HONGKONG.

SHIPPING CONTROL IN HONGKONG, 1917-1923.

No.

1923

Laid before the Legislative Council by Command of His Excellency the Governor, 26th July, 1923.

The publication of a report upon shipping control in Hongkong during the war has remained in abeyance pending a final settlement of all outstanding questions, and more particularly the completion of an action brought by certain shipowners against the Hong- kong Government in the Hongkong Courts in December, 1919; it being considered undesirable to comment upon a matter forming the subject of legal proceedings. The action referred to was discharged on the 25th July, 1923. The general settlement with the owners is all but complete, and, in view of the wide publicity which has been given to certain statements made recently in Shanghai, it has been decided to issue the report without further delay.

The statements made at Shanghai were to the following effect :-

(a) that certain vessels were commandeered by the Hongkong Government for the simple purpose of making money out of them, and not for purposes either connected with the war or with the defence of the Colony;

(b) that the vessels were used by the Hongkong Government solely for pro- fiteering purposes and were never used nor intended to be used for war purposes or in aid or defence of the Colony of Hongkong or in any connection therewith;

(c) that the treatment of the owners by the Hongkong Government was pitiless and relentless, with the result that one company was driven into bank- rupter;

(d) that in most cases the vessels were run at a severe loss to the owners; (e) that the vessels were not requisitioned by the Commodore ;

(f) that the connection of the Imperial Government with the Hongkong Control

Scheme was kept secret from the owners;

(g) that owners were not informed that war risk was covered by the Govern-

ment, and that they incurred no small cost in respect of such risk : (that, immediately after certain legal proceedings were commenced against the Government, the Colonial Secretary requested the owners to stay such proceedings on the ground that an amicable settlement might be otherwise arrived at; and that the owners made the unfortunate mistake of consenting, as it later transpired that the postponement was merely used to give the Government time to prepare and enact an Indemnity Ordinance.

These matters are dealt with in detail in the following report.

1. In March, 1917, the Imperial Government promulgated a scheme, thereafter known as the Liner Requisition Scheme, for the requisitioning of all yet unrequisitioned British steamers on Indian and Far Eastern Liner Services. The steamers were to be operated on behalf of His Majesty's Government through representative Committees of Shipowners; but, unless and until the owners were otherwise directed, it was not the desire of the Government to interfere either with the nature of their business or the method of conducting it which would have been followed if the steamers had not been requisitioned. The owners were to continue to run the vessels as for themselves, though