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Memorandum by Commodore, Hong Kong.
WITHDRAWAL FROM HONG KONG IN EMERGENCY OF NEW CONSTRUCTION MERCHANT VESSELS.
It is intended to withdraw from the shipbuilding yards at Hong Kong in emergency such new construction vessels as are sufficiently advanced to proceed under their own power or in tow.
2. At present (excluding "Empire Moonbeam" which has been completed) there are four Standard Merchant vessels and two commercially owned coasters in an advanced stage of construction. Two of these remain to be launched during June, 1941.
3. European officers for all the above ships (except one coaster completing at Taikoo Dockyard to the order of the China Navigation Co.) are available in Hong Kong.
4. All vessels will be sent away as soon as they are completed, to be put into service; but of those present when an emergency arises necessitating their withdrawal, ships capable of steaming will be used if possible for towing away others not so far advanced.
5. Both Dock Companies have undertaken to bunker ships for a voyage of 5,500 miles, and to embark the necessary stores and provisions as well as materials and plans for completing ships at destination, and as much as possible of valuable stock materials.
6. In the cases of ships towing or being towed salvage rates would be paid to the crews, i.e. three times normal pay, until the Port of destination is reached, when the matter will have to be further considered.
7. If the Insurance of vessels, cargoes and crews has not been completed when the order to withdraw is given I intend to suggest to the Admiralty a general indemnification in lieu.
8. It is presumed that evacuation of these ships would coincide with the evacuation of plant and material, plans for which have been forwarded. Arrangements have therefore been made with the Dock Companies to load as much in material and stores into the se ships as time permits.
9. In order to complete the construction of these ships on arrival at their destination it will be necessary to despatch a certain number of European and Chinese employees. The names of the former have already been forwarded. It does not follow that it would be necessary to despatch all the personnel mentioned but mumbers required would depend on the state of advancement of the ships.
A list of the European personnel to be despatched is attached.
10. Detailed plans for the preparation of the ships have been prepared by the Dockyards of which I hold copies.
11. Should the despatch of these vessels become necessary I intend to issue the authorization direct to the Managers of the Companies and will inform the Government when this has been done.
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