As I said at our last meeting orders were placed in 1936 for two coasters of the Taksang type and a small upper river steamer. But for the difficulty in obtaining steel all three would have been. in commission by now. As it is the river steamer Liwo is about to be taken over while the two coasters should be ready in midsummer. The construction of all three was ax you know financed by a loan with the Hongkong and Shanghai Banking Corporation. I am glad that during the year it was possible to make substantial payments towards the reduction of this account.
Though at December 31 a sum of approximately £150,000 still remained to be financed, to-day it is £125,000. But even with these additions the fleet is still below normal requirements and expansion is essential.
Iam going to make no attempt nov to forecast the future. We must all admit that the immediate outlook is certainly not cheerful with China Japan engaged in a bitter struj Our deepest sympathies go out to all those who have suffered. But trade has remarkable recuperative powers here in the Far East and there will be much to do when one: again it takes its normal and unhampered course, So far 1938 has begun quite well but I hope outside shipping may not be unduly attracted to these parts as happened after the Russo-Japanese and Great War. Their owners will find as they did before that they chase a chimaera.
Turning to the Statement of Accounts, the items debited to revenue amount to £142,998.8.5d, and include the balance brought forward from 1036 account £12.368.8.11d., general Turning to the Yangtsze; in' August ihe Chinese authorities placed boom of sunken ships across the river near the Kiangyin Forts and we were left with river steamers either side of the obstruction. With very great enterprise those at Shanghai managed to reorganize the pieces and operate the two ends and the middle. Later further barriers were imposed, Before they were, however, it was possible to get some of our ships back to Shanghai where they have since been employed, You have seen in the Press that the Tuckwo and the hulk Madras LI at Wuhu were destroyed by Japanese action, The ship was actually about to tow the hulk higher up the Yangtsze, A claim has been formulated, the hands of His Majesty's Go ment and for the moment this aspect of the disaster must be considered as sub judice. I do, however, want to put on record the valiant efforts of ihe Master, the officers and the crew in trying to save the ship at the greatest danger to themselves.
The loss of life, eight sailors and teaboys, might have been far greater: in an affair where all conducted themselves with great bravery. Thanks and admiration are due to Captain J. W. Hurst, owe, the Admiralty Pilot who acquired a tug, the Chenyang, and took off those on Tuckwo.
Ah Yuen, Messroom boy of H.M.S. Ladybird, collected the Chinese Volunteers who manned the Chen-yang, going in the tug himself.
Without these very gallant actions ihe result must have been stark tragedy.
To complete the review of the Company's activities: Borneo exporters continued to re: riot the shipment of timber and with sales further limited by conditions.in China our vessels in this trade did only moderately well.—There a further improvement on the Calcutta Line though much had to be spent 10 bring these ships up to Simla requirements, It was again found necessary to keep up our important connections by chartering the Islami for six months.
Text read from the printed page and cleaned; old type leaves the occasional error.