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Catalogue Reference:CAB/24/257
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IHIS DOCUMENT I S THE PROPERTY OF HIS BRITANNIC MAJESTY' S GOVERNMENT.
SECRET^
^CRETjl
COPY NO.
^
n.P.313 ( 3 5 ) .
CABINET.
Tramp S h i p p i n g
Subsidy.
Memorandum h y t h e P r e s i d e n t
the Board of Trade.
1.
The
subsidy
to
the
Tramp S h i p p i n g
p r o v i d e d hy t h e B r i t i s h S h i p p i n g
accordance with decisions
CP.
161(34),
received
the
2.
Committee
subsidy
After
for
reasons
advanced in
that
is
it
in
of
the
3.
It
is
subsidy
the b a s i s
of
during the
in part
this
factors
and w i l l
increase
in
the
it,
a
responsible
decline
in world
to be s t i l l
for
The f i n a n c i a l
far
subsidy
from
has
trade,
and o f
of
index
for
to
of
the
better.
freight
cent,
than a t
are,
working,
the
88.4 per
first
average
conclusion
in i t s
any
(on
period
however,
and
Notwithstanding
the
the
undoubtedly
changed f o r
percentage
for
change
the y e a r
that
economic
the
t e n months
in
in
either
satisfactory,
of
the
and
of
shipping,
and t h e p r e s s u r e
position
-1­
continuance
which l e d
Shipping
the d e p r e s s i o n
seaborne
the
Tramp
of
1934.
Industry.
T h e r e h a s b e e n no m a t e r i a l
factors
have
the
temporary p o l i t i c a l
the average
t h e Tramp
tonnage.
of
to
Present
of
for
The i n d i c a t i o n s
due
and I
have r e a c h e d t h e
the f i g u r e
i s below the
of
in
request
circumstances
1935 t a k e n t o g e t h e r
4.
this
not be maintained.
October,
submitted
and s a t i s f a c t o r y
higher
years.
i n c r e a s e was
Position
I
the
t h e Chamber
1935 r e a c h e d
four
in
months.
of
results
19S9 ss 1 0 0 ) ,
last
twelve
of
that
a request
was
1935,
on b e h a l f
have not m a t e r i a l l y
that
October
body,
While
its
grant
for
Shipping,
that
support
can b e no d o u b t
true
on p r o p o s a l s
consideration
there
rates
of
well founded.
proved b e n e f i c i a l
Act,
on t h e 3 1 s t December n e x t
a further
careful
I n d u s t r y which
(Assistance)
reached
from t h e Chamber o f
Shipowners'
of
expires
of
of
the
namely,
amount
of
the
excess,
tramp i n d u s t r y
the
two main
appears
unemployment
in
shipping
is
still
respect
their
the
serious.
of
the
T h e r e has
heavy
Governments
subject
changed
of
the
a slight
change
granted by
for
improvement
the b e t t e r
foreign
shipping
goes,
has n o t
of
The
(a)
the
the
led
The
in
governments
to
tramp
shipping.
has,
other
I
regret
hand,
a subsidy
the
maritime
to
say,
so f a r
on
not
a s my
to British
non-subsidising
powers
tramp
countries
to
subsidies.
attached
Subsidy.
to
the grant
should produce
the
that
would have
was a l s o
subsidy
the
of
the
subsidy
a satisfactory
and s h o u l d
satisfy
scheme w o u l d as f a r
as
were:­
scheme
the
practicable
t o be
t o be
a real
clearly
measure
of
organisation
understood
of
­
that a f i g h t i n g subsidy, i f g i v e n , would be g i v e n
f o r a d e f i n i t e p e r i o d o n l y , and w i t h i n t h a t p e r i o d
be subject to withdrawal i f f o r e i g n subsidies were
r e d u c e d o r r e m o v e d , o r i f t h e f r e i g h t m a r k e t came
b a c k t o r e m u n e r a t i v e l e v e l s , and
t h a t t h e owners s h o u l d , through t h e i r
international
S h i p p i n g C o n f e r e n c e and i n a n y o t h e r w a y s o p e n t o
t h e m , e n d e a v o u r t o p r o m o t e an i n t e r n a t i o n a l s c h e m e
which would approximate the supply o f tonnage t o
t h e demand.
order
to
tramp s h i p o w n e r s
organisation
of
foreign
addressed
e n s u r e t h a t i t was e f f e c t i v e l y d i r e c t e d t o
s e c u r i n g t h e g r e a t e r employment o f B r i t i s h
tramp s h i p p i n g a t the e x p e n s e o f
foreign
subsidised shipping;
there
(ii)
of
Government
p r e v e n t t h e s u b s i d y from b e i n g d i s s i p a t e d by the
domestic competition of B r i t i s h ships c a r r y i n g
tramp c a r g o , and
i.e.,
(i)
any
applying
(ii)
It
grant
Tramp S h i p p i n g
Government
In
subsidies
shipowners
(i)
principal
On t h e
of
conditions
for
(b)
the
shipping
embark on a p o l i c y
Results
of
which His M a j e s t y ' s
situation.
information
7.
showing
been no
subsidies
The communication
the
6.
though
shipping.
5.
to
and s h i p b u i l d i n g ,
carry
out
the
conditions
in
(a)
d r e w u p and s e c u r e d my a p p r o v a l
under
which
they
Administrative
Committee,
representative
cargo l i n e r
set
composed
up a Tramp
of
above,
of
the
a scheme
of
Shipping
tramp s h i p o w n e r s
o w n e r s who u n d e r t o o k
the
and
task
of
some
2 i ij
organising
8.
co-operation
The Committee
in
have
s i x months
of
Parliament
and p u b l i s h e d
Committee
carrying
their
have
out
eliminate
working.
achieved
domestic
of
freight
As
rates
in
is
has been
ships
British
obtained
owners,
the
the
and h a v e
p o s s e s s e d by
arrested
same t i m e ,
to
of
largely
subsidised
not
only
removed
of
British
the
decline
foreign
has
The
in
been
tramp
schemes
also
competitive
and l o w - c o s t
imposed
British
but
which
markets
and an u p w a r d movement
seamen h a s b e e n s t i m u l a t e d .
support
are
the
to
in
the s e r i o u s
employment
so as
under
and r e s t r i c t i o n s
to
in
industry
tramp t r a d e s ,
schemes,
the
first
the
succe-eded
in b a l l a s t
these
the
success
the
They h a v e
unfixed
of
of
organising
fixed
of
shows t h a t
degree
the p r i n c i p a l
a result
At
have
as t o
results
has b e e n p r e s e n t e d
It
a remarkable
freight
initiated.
and o f
The R e p o r t
(Cmd.5004).
tonnage p r o c e e d i n g
concerned.
t o me t h e
competition.
schemes
a. minimum r a t e
industry.
reported
the condition
establishing
on t h e
the
of
foreign
advantages
vessels
in
co-operation
is
those
trades.
9.
In
untried,
the
tramp
and i t
industry
is
the
only by
reason
the A d m i n i s t r a t i v e
Committee
in
a time
of
depression
to
secure
the
and t o
of
give
acute
loyal
the
the Administrative
justified
10.
the
There
having
has,
the strong
the
of
Committee
measures,
industry
their
position
in
the
and
in
which
subsidy
that
they have been
able
schemes b y B r i t i s h
owners.
T o my m i n d ,
establishing
the
similar
the
owners
work
co-operation
a few months'
cannot
difficulties
and i f
yet
the
trades
are
very
If,
in
experience
be
which b e s e t
important,
other
however,
regarded
such a
i n w h i c h minimum
the A d m i n i s t r a t i v e
schemes
cannot but be b e n e f i c i a l .
only
and t h e y
established
the ground,
introducing
been
Moreover, w h i l e
schemes h a v e been
all
in
foreign
however,
surmounted a l l
experiment.
cover
of
new
has
subsidy.
these- c o - o p e r a t i v e
in
to
of
have been p l a c e d by
observance
lead
idea
trades,
the
they
do
Commit-fcee
the
subsidy
of
as
novel
freight
not
succeed
results
terminated
2 I \y0
a
at
the
end o f
jeopardised,
the present
if
not brought
would d e f i n i t e l y
desperate
he i n
condition
employment
year
to
danger
cut-throat
it
this
an e n d ,
serious
of
from which
all
was t h e
work w o u l d he
and t h e
of
object
tramp
reverting
competition
of
seriously
to
and
the
industry
the
unremunerative
subsidy
to
rescue
it.
11.
As
regards
the
foreign
subsidies,
freight
rates
IS.
With
as
regard
the
to
international
the
during
the
prepared
and put
position
is
that,
international
for
following
Conference
for
the u n c e r t a i n t y
have
year
forward
this
in
in
paragraph
remunerative
relating
set
(b),
to
the promotion
of
on f o o t
discussions
schemes
consideration.
Shipowners
to
on
the
been
present
January,
consider
has been
international
have
The
last
of
shipping
appropriate
and v a r i o u s
and
levels.
the
a conference
of
6
have not been reduced
through
autumn, hut
the
out
the r a t i o n a l i s a t i o n
shipowners,
past
to
condition
organisation,
question
set
indicated,
come b a c k
scheme f o r
British
was p r o p o s e d
already
have not
an i n t e r n a t i o n a l
tonnage,
conditions
a
further
these
deferred
schemes
owing
to
situation.
Conclusion.
13.
that
In
the
months
the
light
subsidy
from
before.
1st
The
a g a i n be
connection
the
s h o u l d be
January,
amount
a sum n o t
expenditure
of
renewed f o r
1936,
the
or
on b e h a l f
administration
be provided
amount
for
if
the
subsidy
the average
level
being
of
level
92 p e r
extinguished
on t h e
a further
the y e a r
of
the
of
the
(to
the
the
the
the
rates
for
purpose
Board of
subsidy).
average
1929 l e v e l
were
of
year
1929,
twelve
rose
attained.
should
Trade
It
the
as
any
scheme t h a t
the
of
conditions
include
subsidy
suggest
should be p r o p o r t i o n a t e l y
freight
cent,
if
in
of
of
for
I
period
same g e n e r a l
exceeding £2,000,000,
jzfould c o n t i n u e t o
of
considerations,
t o he made a v a i l a b l e
i n c u r r e d hy
with
foregoing
in
is
and
the
reduced
above
subsidy
2i
-15
14.
Accordingly
legislation
Committee
not
be
long.
Chancellor
Board o f
I
prepared
with
legislation
5
ask f o r
and t o
a view to
If
the
authority
submit
the
subsidy
the Exchequer
to
the
introduction
is
must b e p a s s e d b e f o r e
of
it
t o have
to be
in
Home
these
1935.
necessary
which
W.R.
need
necessary
1936.
proposals.
Trade,
22nd N o v e m b e r ,
the
March,
t
Affairs
a Bill
renewed,
the 31st
concurs
of
the
PI
The