SIROVICH What is the reason for that increase? Is it due to ization by Japan on the western coast of South America? Me Saugstad I have no knowledge of that, sir. There is some tesse in noth speed and higher class tonnage going in there, which ive some bearing on it.

Mr Sovich. It seems to have doubled.

V SAUGSTAD Yes, sir.

Ink, Mr Chairman, that it might be well to include a tabular vatement of the ordered services of Japan, as published by the Japanese Department of Communications. This includes 31 lines,

which extend beyond Asiatic waters to the United Kingdom, A., North and South America, Africa, and the Near East and Th's tabulation, as published in official Japanese sources, ...s the lines, the number of vessels and gross tonnage, and the d of each, on each line, the frequency of sailings, the duration entre contract, and the contracting company.

TeCHAIRMAN. Without objection it will be inserted in the record. in table is as follows:)

Mr. SAUGSTAD. I might say, as a general statement, on the whole system that only two lines are considered as mail lines-the line from Yokohama to London, and the line from Yokohama to Melbourne, Australia.

Mr. SIROVICH. What did you mean by that last statement?

Mr. SAUGSTAD. The other day, Mr. Congressman, we referred here to the general principles of mail subsidies; and I, at that time, made the statement that, so far as I know, among the principal maritime nations of the world today there are only six contract services or group lines which were officially called mail services, outside of our own system in this country. I referred to 4 British and the 2 Japanese. That is, the British packet service, the Far East, American and others that we cited, plus 2 of the Japanese system, that go to London and to Australia. In other words, the Japanese Government does not consider the rest of its contract services as based on the mail to be transported.

Mr. SIROVICH. But on these lines between Yokohama and London and between Melbourne and Yokohama, the Japanese Government considers the subvention that they pay there as a mail subsidy? Is that it?

Mr. SAUGSTAD. That is apparently so, from the latest information that we have on it; and I might say that the information on the Japanese system of services is not altogether very complete. The so-called "mail services" were a post-war development. În 1920 and 1921 the Japanese Diet made a provision for a system of postal payments, to be applied to the European and Australian lines and the line to Seattle, all served by the N. Y. K.

It is stated that the contracts of this company with the Government during the period of the World War prevented the company from taking advantage of the high freight market then prevailing, and, also, that the company proposed to the Government the high mail-pay principle, with reduction of Government supervision over the commercial operations of the company. Accordingly the mail payments were then established on a basis known as "measurementmileage basis"; that is, measurement of space occupied by the mails on board ship, according to the following schedule: 3.3 sen (an equivalent of a little less than 1⁄2 of a cent in United States currency) for 100 cubic feet of space per nautical mile; 4.6 sen for 200 cubic feet; 5.9 sen for 300 cubic feet; 7.5 sen for 400 cubic feet; 9.2 sen for 500 cubic feet; 11.10 sen for 600 cubic feet; 13 sen for 700 cubic feet; 15.10 sen for 800 cubic feet; 17.03 sen for 900 cubic feet; and 19.6 sen for 1,000 cubic feet per nautical mile.

For all space in excess of 1,000 cubic feet the rate was 2 sen per 100 cubic feet.

Upon the expiration of the contracts, due to end in 1929, the mail pay principle was retained on two lines, those to London and to Melbourne.

As of particular interest, perhaps, at this time, we might state that the three subsidized lines, from Japan to Seattle, San Francisco, and the west coast of South America are now operated by the N. Ý. K.

And I think, Mr. Chairman, that it would probably be just as simple to insert in this record the specifications of those contracts. There is De pourt in reading all the allowances and all the details in connection

w.t. them

ine (HAIRMAN. All right. Without objection, they may be shown. A summary of the main conditions of the contracts with the Nippon Yusen Kaisha lines follows:)

JAPAN-LATTLE LINE

atstion, of contract - Jan:iary to December 1934.

al het service Once or more in 3 weeks.

taa, ment - - Three under 15 years, 11,000 to 12,000 gross tous each, and ai, fa speed

For the service between Japan and Seattle, the following amounts cias subsides for the 5-year period of the contract 1929-30, shed) KK) ; 190 31, 141500 vên 8705,122; 1981 32, 1772,550 sxpx85, 1955 34, 1,702,550 yen ($818,885); 1934 35, 1,702,580 yen

contract - January 1930 to December 1934.
Falı ge. Once or more every 4 weeks

Three under 15 years, 15,000 to 14,000 gross tons cach, and to speed

The sat uddies covering this service have been consviera' ly increased new contract, as compared with recent amounts authorized under the ch, exired in 1929 Oli contract 1928 29, 554,427 yen $266,145 ; New contract 1950-31, 2511 449 ven 2 5 140 yen 2,747,163 yen

ven $169,837

1+1 32, 2 865.140 ven
1623-34, 2,836 713

yen

$1,426 840; 1962 33, ($1,422 643; 1954 55,

Once or more in 2 months.

Ihree under 15 years, 7,000 to 9,700 gross tots each, and of

The a thorized subsidy for the new west coast of South America in besti sr,cre, sed somewhat as compared with the amounts under the tabach, expired in 1929– OH1 contract. 1928-29, 1.791,416 yen $892 125); 1-25484 ven $909.030. New contract: 1950 31, 2.227 026 ven 1951 32, 2186‍932 yen 81 089 072; 19.2 33, 2 218 078 yen 1963 34, 2043,672 yen ($1017,749 ; 1934 „5, 2058 454 yen

Mr SAUGSTAD. Now, unless there are some further questions on that point. I have no further comment to make on the contract sister of Japan; and I may suggest that the next subject is that -f the shipbuilding and the scrap-and-build plan, construction subiv plan, of Japan. We have a close analysis of that, which is ng to take a long time; and I do not know whether you want me to proceed on that now or not.

156 CHAIRMAN. I think we might just as well take that up in the ng. Mr Newton, did you prefer to go on this afternoon or in the morning?

Mr NAWION. I prefer to go on in the morning. I need a little tere data.