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During the whole period that this matter has been under consideration the Government, before taking each step, has sought the advice of the Vital Requirements Committee and Sub-Committee, consisting of Mr. Edkins, Mr. Anton and subsequently Mr Landale, Mr. Shewan, Mr. Dodwell, Mr. Lau Chu-pak, Mr. Young, and Mr. Sutherland. Mr. Fletcher has repre- sented the Government on this Committee."

15. The Hongkong Control Scheme came into operation on the 15th April, 1918, and its great practical utility at once became apparent. A number of tramps, whose movements were being directed by the opportunities for profit-making arising from the requisitioning of competing ships, were now made directly available for war purposes, to release and take the place of more sea-worthy vessels. It was possible at last to use all British tonnage in the Far East in the most economical way to meet pressing needs.

16. An account of some of the uses to which certain of the vessels were put may be of interest. The S.S. Wollowra had been carrying coal for the account of the Hongkong Government since December, 1917, and later the S.S. Telemachus, Rotorua, Ching Chow, and Patriot were used from time to time for a similar purpose. The first trip of the S.S. Patriot was for account of the Naval Yard. The Government was thereby enabled to supply coal and coke to the Naval authorities whose requirements were considerable, and also to the Military Authorities and to various industries such as the Hongkong and Whampoa Dock Company, Hongkong Steel Foundry, Hong- kong, Canton, and Macao Steamboat Company, and the Hongkong Electric Company. It also supplied at a cheap rate 1,200 tons mouthly to the Chinese Section of the Kowloon- Canton Railway, without which that Section would have been unable, to continue its service.

When, in the spring of 1918, arrangements were unexpectedly made by the Imperial Government to divert Dutch tonnage, and the trade in raw sugar between Java and Hongkong was in consequence completely dislocated, the S.S. Wollowra was despatched to Java and brought up a full cargo of sugar. The Government was also able to arrange for the Russian S.S. Vitim, not under its control, to bring sugar.

The Government of the Straits Settlements had in the meantime represented to the Hongkong Government the need for an increased output of tin for war purposes and had requested assistance in carrying. Chinese labour to that Colony. It was possible to make arrangements to send coolies from Hongkong, but Singapore had quarantined the Colony on account of cerebro-spinal meningitis, and was unable to entertain a repre- sentation that the disease was understood to be quite as prevalent in Amoy and Swatow as it was in Hongkong. Consequently the S.S. Wollowra was placed on the Amoy, Singapore, Rangoon run, for the particular purpose of carrying coolies to Singapore, and also to carry on the normal trade with Rangoon.

The S.S. Haimun was taken up to carry coal for Admiralty account, but, as she was found to be unsuitable, she was despatched in June, 1918, to Amoy to carry coolies to Singapore. She remained on this run, and in August she was put on the trip Singapore, Hongkong, Amoy, Singapore the reason being that the Green Island Cement Company required tonnage to carry cement for Government works at Penang, while the Government of the Straits Settlements required coolies, but would not allow them to come from Hongkong. Consequently the S.S. Haimun carried the cement via Amoy. In September the ship was diverted for a trip to Java to fetch sugar.

The S.S. Telemachus was taken off a charter bringing in Straits $115,000 a month in order to carry coal for specified Hongkong industries. This coal came from the Kailan Mining Administration on whose behalf Colonel Thomson and the Admiralty had invoked the assistance of the Hongkong Government. The S.S. Patriot also carried the Kailan Administration coal. In November, 1918, she was detailed to bring rice from Saigon.

It was at the same time considered to be essential, in the interests of British trade and prestige, to keep as many as possible of the Hongkong controlled vessels on the regular coast runs, and in this connection the Government kept in view certain repre- sentations which had been made by His Majesty's Ministers at Peking and Bangkok, and also representations made by the Governor-General of Indo-China regarding the Saigon rice trade. The Douglas Company's ships, Haitan and Hai Hong, served the customary Coast ports throughout the requisition period, with the exception that the S.S. Hai Hong was lent to the Naval Authorities for one voyage to carry reinforcements from the Manchester Regiment to Vladivostock. The steamers Castlefield, Manapouri, and Brisbane continued on their original charters within the usual coast trade limits, and such other vessels, as