Flour shipments North China. Australian Wheat Board experiencing
difficulty securing British Ministry of Shipping Warrants for
North China. Navy Office has informed Board that vessels not to
proceed north of Hong Kong without its consent. Board cabled
London recently and asked if the Norwegian Mission would agree to
charter for Hong Kong with object transhipping from there for
North China ports also if they would recharter three Yugoslav
vessels at present on passage to Hong Kong. Request was refused
and Board informed that, if it persisted, owners of Yugoslav
vessels would be directed to refuse Board's business and fix
elsewhere.

The North China markets are very important outlets for Australian
flour and it is desirable that we retain them. We are unable
however to reconcile attitude of Ministry of Shipping with views
expressed by Ministry of Economic Warfare as shown your telegram
No. 156 of 26th February, 1941. [1] Would appreciate information
which would clarify position including reasons for Ministry of
Shipping's objections to the chartering by the Wheat Board of
vessels for Hong Kong.