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or whenever a passenger vessel is retired from service other than in case of loss chargeable to the insurance-credit funds of the State, these funds shall become the property of the State in compensation for the engagement assumed by it.

IV. LIST OF DUTIES (CAHIER DES CHARGES )

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OBJECT AND TERM OF CONCESSION

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The first section provides that the operation of maritime postal and general interest services between France and United States of America, and France, Mexico, the Antilles, and Central America shall be modified in such a manner as to always remain within the limitation of 150,000,000 francs ($5,850,000) annually under the contract provisions.

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TERM OF CONTRACT

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The term of contract is for 14 years, beginning January 1, 1933, and ending December 31, 1946, unless previously canceled, and the State reserves the right to extend this term until the service is taken over by another contractor, in case the agreement has not been renewed within reasonable time before its lapse. However, the term of extension must not exceed 1 year without the consent of the concessionaire or the contractor.

The State waives its power to subsidize directly or indirectly any service leaving France which touches at any point on the lines covered by the contract, or which leaves a point outside of France and touches any two points provided in the contract. This limitation, however, does not apply to (1) supplementary lines created for local needs of the colonies nor (2) to lines which by virtue of an agreement with the State assure a service to the colonies in the Pacific via the Antilles and the Panama Canal, nor (3) to lines which are to serve certain transportation purposes, which cannot be guaranteed to be taken over fully by the contractor, etc. The contractor, on the other hand, has the right to preference in contracting for services which the Government may decide to create in extension of the services covered by the contract.

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PERFORMANCE BOND

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As a guarantee of performance, the Compagnie Generale Transatlantique assumes a performance bond in the amount of 3,000,000 francs ($117,000) in cash, treasury bills, State obligations, or floating property. The contractor agrees that all insurance policies covering vessels given as security under the bond cannot be settled excepting under agreement with the Minister of Merchant Marine.

The bond applies to claims against the contractor, as specified in the list of duties, or in all cases of accounting agreements with the State, including those regarding postal shipments, all damage attributable to infractions of the contract generally, and extra expenses arising from measures taken for ensuring the service in case the contractor fails to carry out contract stipulations.

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CHAPTER II. SPECIAL PROVISIONS COVERING SERVICES BETWEEN FRANCE AND THE

UNITED STATES OF AMERICA

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The contract provides 52 round-trip voyages annually between Havre and New York, with one sailing per week, except that from November 1 to March 1 only one sailing per fortnight may be made, on the condition that 52 obligatory foyages are completed within the year. Passenger vessels are prohibited from crossing the Newfoundland Bank from April 15 to October 15. The company shall operate a passenger vessel on the Marseille-New York line on type of the De Grasse, which vessel is to be fitted out in Marseille. During the period November 1 to March 1 this steamer may be substituted by a passenger steamer of the Havre New York line, which may not be in the North Atlantic service at that time. The vessels covered by the contract when concluded were: T-(Normandie, under construction), Ile de France, Paris, and France.

The contract provided that until the T-6 goes into service the Champlain and Lafayette may be designated for postal service by special authorization for mich voyage by the Minister of Merchant Marine.

Vessels to be constructed for the service must have a minimum displacement, fully loaded, of 22,000 tons. The contractor must possess at least three pas. senger vessels having a speed of over 20 knots at sea. In case one of these

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vessels goes out of service the Minister may require a replacement vessel to be ordered within the ensuing 6-month period.

SPEED The average minimum speed to be maintained by each vessel during the year shall be fixed as follows: T-6 (Normandie, under construction), 23 knots ; Ile de France, 20 knots; Paris, 20 knots; France, 18 knots; and for substitute vessels : Champlain, 18.5 knots; Lafayette, 17 knots.

For vessels to be built, the minimum speed shall be determined by competi. tive conditions in the trade. The minimum speed may be reduced by one. tenth of a knot from January 1, 1933, for vessels in service on that date, and for each new vessel from the January 1 following its entry into service.

CHAPTER III. SPECIAL DISPOSITIONS AS TO SERVICES BETWEEN FRANCE, MEXICO, THE

ANTILLES, AND CENTRAL AMERICA

The services to be performed by the contractor are covered by four lines, as follows:

Line no. 1.-Covering fortnightly sailings between Havre, Plymouth, one or two Spanish ports, Barbados, Puerto Colombia, as well as several other ports, terminating at Cristobal, and return.

Line no. 2.--Covers 10 voyages a year between St. Nazaire, Bordeaux, four Spanish ports, and many ports in the West Indies, terminating at Santiago de Cuba, and returning via San Juan, St. Thomas, etc.

Line no. 3.–To supply two voyages not covered by line no. 2, in order to make monthly sailings locally between Fort de France, St. Lucie, Barbados, Pointe-a-Pitre, Basse-Terre, St. Barthelemy, St. Martin, and San Martin (Puerto Rico) and return.

Line no. 4.-One monthly sailing in the interisland services between Fort de France, St. Lucie, Barbados, Trinidad, terminating at Demerara, and return.

The Minister is authorized to require the establishment of the services planned in the contract of April 21, 1927, whenever economic circumstances shall permit it, without, however, exceeding the maximum of the subvention. It is understood that line no. 2 and a line to Mexico, if established, shall terminate in St. Nazaire.

SPEED

The minimum average annual speed on Line No. 1 shall be 14 knots, while Lines Nos. 2, 3, and 4 shall be 11 knots. For vessels in service at the time the contract was concluded, the following variations were permitted :

Knots Ile-de-Salle

11 Guadeloupe

13 Pellerin-de-Latouche

13 Carimare

9 Flandre

11 Antilles

10 Saint-Raphael

10 Saint-Dominque

9. 5 Maeoris --

11 For the other vessels, such as Colombie, Cuba, and Mexique, no reduction is permitted. A reduction of one-tenth of 1 knot per year from January 1, 1933, shall be granted for passenger vessels in service at the time the contract was concluded and for new passenger vessels from the 1st of January following their entry into service.

CHAPTER IV. SPECIAL DISPOSITIONS CONCERNING THE SERVICES CONNECTING THE

MEDITERRANEAN COAST OF FRANCE WITH ALGERIA AND TUNIS The services defined by the charter party of March 1, 1928, shall be maintained and also all stipulations of that charter party."

Vessels used in these services shall benefit in regard to their replacement through the functioning of special account in the contract. Mediterranean

? See Shipping and Shipbuilding Subsidies, p. 122.

traffic shall be covered by special book entries, and the commission charged with the administration of the charter party of March 1, 1928, shall extend their activities to all transportation for the account of the Compagnie Generale Transatlantique in the Mediterranean, including the company-owned vessels as well as those which have been chartered from the State, and the commission shall be obliged to include in its membership 1 representative for Algeria and 1 for Tunis.

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CHAPTER V. DEFINITION OF SPEED

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The average annual speed is the average of the speeds obtained by each passenger steamer during the various passages. The total of the individual results divided by the number of passages shall establish the figure for the average annual speed, and the average speed of each passage shall be computed by dividing the distance between the port of departure and terminal point of the line, by the time used for passage, deduction being made for stops at ports of call, exception also being made for cases of force majeure. Damage to engines, except broken shafts or lost propellers, shall not be considered as force majeure.

The time of passage shall be expressed in hours and tenths of an hour. The speed shall be expressed in knots and hundredths of knots, the final figures being computed to the hundredth of a knot. In the computation of the speeds attained, the periods of slowing-up arising out of the necessity of making the ship arrive in port during working hours shall not be counted.

If the annual speed of passenger vessels is equal to, or more than, the speed authorized for that vessel, the required speed for the line shall be taken as speed of the vessel. If the average speed of a passenger vessel is less than the speed authorized for that particular ship, the speed required for the line, minus the deficiency, shall be taken as the speed of the ship. The contractor may be required to replace each passenger vessel of which the average speed for the voyages completed during the year past shall be one knot under the contract speed for the line to which the vessel belongs or for the passenger vessels listed.

Two years shall be allowed for effecting replacements, which period may be extended to 3 years if the replacement necessitates the construction of a new vessel. The rejected passenger vessels may be readmitted into the postal fleet after reconstruction, when they have qualified by official trials.

Transportation for State account (see also p. 30) Passengers traveling for account of the State, in the public service or under agreement with the central or any colonial government of France, including students with scholarships, are entitled to 30-percent rebate on transportation and subsistence applicable to commercial passengers. Within this category is included also families and parties or persons. The 30-percent reduction applies to excess baggage weights on the New York Line, but not on furniture and equipment which must be carried at commercial rates.

Officials of the Merchant Marine Administration or Inspection-General of Finance, on special tours of inspection relating to contract performance, are transported gratuitously, the subsistence being chargeable to the State.

In case of troops transportation, the contractor must set aside certain spaces for storage of troop equipment.

The contractor undertakes to carry a number of passengers for State account equal to one-fourth of the total number of berths on each of the four classes, first, second, intermediate, and third, which comprise the facilities of the vessel. In cases where the needs of the Government exceed one-fourth, the contractor shall reserve the number of berths necessary, subject to 15 days to 3 weeks previous notice from the Government, prior to the sailing of the vessel. Fifteen days' notice shall be given when the number of the passengers of the State is between one-fourth and one-half of the berths and 3 weeks shall be given if the number is over one-half of the berths.

One-tenth of the carrying capacity of the vessel must be reserved for State and colonial cargo traffic up to the 10th day before sailing, upon the expiration of which the company may use this space for commercial purposes. The contractor must grant the Government the most advantageous commer-, cial freight rates and is otherwise free to grant the Government special rates.

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Transportation of State funds and property The contractor must load on its passenger vessels, within the limits of capacity still available at the time a request is made, ordinary shipments of all kinds destined for the service of the State or the colonies, on condition that loading and discharging operations shall be performed under normal conditions and without prejudice to existing contracts. The contractor must carry the funds as well as bullion which the Treasury may ship or which may be shipped for its account, and at rates arranged with the Minister of Finance. Special agents accompanying shipments of funds or metals are entitled to free passage less subsistence, and the contractor is obliged to follow such agents' instructions for the loading and discharging of specie and for their placement and safekeeping on board.

Other transportation for State account The contractor undertakes to carry bodies of soldiers, sailors, and officers, who have died abroad or in the colonies, at 25 percent reduction from the commercial rate. Special agreements cover the transportation of deserters, persons under discipline, untried prisoners, convicts, and persons under extradi. tion for the Government of France or of a foreign country. For the transporting of insane persons, the contractor is entitled to double the rates paid for other passengers of the same class.

Transportation for account of the contractor The contractor is permitted to carry passengers and cargo in accordance with commercial practice. The contractor forbids agents of the vessel or vessel employees from undertaking any commercial operation for their own account, and the usual navigation requirements, as to customs and quarantine regulations in ports of call, are required to be complied with under contract terms. Cargo must be properly stowed. Inflammable or dangerous cargo may not be placed on deck nor in any of the spaces reserved for passenger accommodations.

The care of and service to, passengers are required by contract to be according to the best conditions in practic on French and foreign passenger vessels, such as prescribed food requirements for individuals, etc.

An official complaint register shall be carried on each vessel, visaed by a Government commissioner and open to all passengers, in an accessible part of each ship, and upon the return of each voyage a certified copy of this register shall be transmitted to the Merchant Marine Administration by the Government commissioner. In this manner, any complaint against the service of the ship may be entered by any passenger for consideration and action by the Merchant Marine Ministry.

An important concession is that the contractor shall give preference, all things being equal, to shipments of French commerce, among applications for space, provided these applications are made to the contractor's agents within the period established for this purpose and stated in notices posted in each agency. Such applications will be given serial numbers and registered at each agency on a counter book, showing date and hour of receipt.

CHAPTER VI. POSTAL SERVICE The contractor undertakes to transport without limitation as to weight for account of the French Government, all mail tendered in ports served by the vessel, including diplomatic pouches.

The rate to be paid for the carriage of mail is established by article 40 of the law of December 19, 1926, which provides :

Free transportation of diplomatic pouches and, when necessary, for the official of the Postal Administration accompanying them, shall be provided.

The contract provides for expeditious handling of mails in ports, for delivery and collection, and for port transportation of postal officials, and specifies that the contractor shall provide at this own expense for the replaceinent of, or repair to, sacks lost or damaged through ship's fault.

Postal agents on board The Postal and Telegraph Administrations have the right to place on boar:1 each passenger vessel an official known as “Controller of Maritime Postal Service", who shall possess full and exclusive authority in regard to everything concerning receipt and transmission of mail entrusted to his care.

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For subsistence, the Controller shall be accommodated as a first-class passenger and during calls in ports when there is no table service for passengers, shall be accommodated as an officer of the ship and at a reduction of 50 percent from the prices of the first-class passenger subsistence.

Cabin accommodations are provided for the Controller and his work, as well as secure spaces for valuables and for storage of mail.

For the space and accommodations, the Postal Administration undertakes to pay the contractor at one-half the usual commercial rates for space actually occupied, not including subsistence.

Except in cases of force majeure, the contractor assumes responsibility for damage to the mails in the same manner as the Postal Administration is liable to third parties.

Postal monopoly The contractor is forbidden to undertake the carriage of any mail matter except that sent by French and foreign post offices, French diplomatic and consular offices. The only exception to this rule is ship's papers and documents remaining in the custody of the master of the vessel.

Parcel post is to be carried in compliance with the laws, agreements, regulations, and tariffs in force or which may be formulated.

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AGREEMENTS WITH THE UNITED STATES POST OFFICE DEPARTMENT The contractor is held to the obligations and the advantages accruing to the French Government through agreements under the International Postal Union, which may be made during the period of the contract. The same shall apply to any agreement which may be concluded with the United States Post Office Department or transportation company by the Minister of Posts and Telegraphs on condition that they do not entail for the contractor greater obligations nor lesser advantages than those which would accrue in applying the agreements under the International Postal Union.

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CHAPTER VII. ITINERARIES The days and hours of departure at terminal points and other traffic conditions shall be fixed by the Minister of Merchant Marine, upon proposal by the contractor, after taking into consideration the requirements of the postal and commercial services. Alterations in itineraries may be made by the Government without extra remuneration to the contractor, in cases of epidemics or other emergencies.

Departure from France must not take place before mail shipments from l'aris have arrived. Delays under the circumstances are subject to log entry and cannot exceed 6 hours without the consent of the contractor.

All cases of force majeure creating delays or diversions must be covered by log entry and by reports of the master of the vessel, stating all conditions.

Rate control and preference The contractor shall fix commercial passenger rates and freight rates to the best commercial advantage, upon conditions which shall be published in the company tariffs.

A preferential reduction of at least 5 percent shall be fixed in favor of the various classes of passengers transported between France and the French Antilles, as compared with those transported between France and Colon.

Freight rates to or from the French Antilles and French Guiana must not be higher than those for similar freight to or from Colombia and Venezuela. Freight carried from France to French Guiana should always be transshipped at Fort-de-France on first passenger vessel leaving that colony.

Export merchandise of foreign origin, transshipped to complete the cargo on # mail-passenger vessel sailing from France, must not be charged a lower freight rate than that imposed by the contractor on similar goods of French origin, to be sent by the same vessel to the same destination.

import merchandise, loaded in a foreign port, must not be charged a higher freight rate than that imposed by the contractor on similar merchandise shipped over the same route, to be transshipped to a foreign port. Rebates are forbidden to shippers of freight of foreign origin or destined to be transshipped in a French port to a foreign port unless equal benefits are conceded to goods of French origin or destined for France, loaded in the same Dort or on the same passenger vessel.

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