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4.
Japanese Government and Japanese shiping companies
had paid 34.8 of the total pilotage fees earned during
7.
the past year, which would entitle them to 13 pilots.
The Filots' ssociation referred the question unofficially to this Consulate-General, and produced
From these it was
the quota figures for examination. discovered that, on the basis of the five year period, the British were entitled to two vacancies, and that the Japanese provided they accepted the exchange compensation scheme and paid the sums in arrear, would be entitled to the third vacancy. Should, however, the Japanese continue to refuse to pay exchange compensation, both the Germans and the Dutch would have a prior claim to the third vacancy.
8.
After careful consideration, I decided that, for the following reasons, it would be advisable to waive the British claim to two vacancies, and to raise no objection to all three being filled by Japanese:
(a). To become a member of the Shanghai Licensed Pilots' Association it is necessary for the candidate to purchase a share in the Shanghai Pilot Boat Company, Limited. At the time these
negotiations were taking place, the shares cost G.U.25,000 or approximately $65,000 each at the official rate, and there were no British Master Mariners available who, under present conditions, were prepared to invest that amount.
$
(b).The/
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