1918.05.10.De James Burness and Sons.Londres
James Burness & Sons
138, Leadenhall Street
London, 10th May 1918
Messrs Worms & Co. - Paris
Dear Sirs,
Port Said. We have duly received your private letter of the 7th inst., is which you tell us that the French Government are now going to find means of getting tonnage to send their own coal to Egypt to be landed there for their account and handled by you.
We have not been able to see Mr. De Lubersac today but we had an interview with Mr. Newton Dunn the purport of which we gave you on the telephone. We told Mr. Dunn that the French Government were now going to send their own coal to Port Said and that you had agreed to handle it there. Mr. Dunn asked what price you were going to charge for handling and said that if it were 10/- or even 7/6 per ton it would be well above their price to the British Admiralty but he did not wish you to quote a lower figure than they were getting. We told him we hesitated somewhat to ask you that question inasmuch as he had never disclosed to you the price he obtained from the British Admiralty when he said he could not tell you that but he volunteered that having regard to the contribution which had to be made to the Pool it was not a paying concern and that he was now on the point of asking that the handling charge should be increased, and that if your price to the French Government was lower than his it would prejudice his negotiations for that purpose.
You told us you had not yet definitely agreed to handle for the French Government as you wanted to know whether Port Said could do it and, if so, on what terms and you also wanted to get the consent of your neighbours to the handling arrangement. We spoke to Mr. Dunn about this point when he told us there should be no difficulty in getting the permission.
You further informed us that there was one point you wish to make, viz. you did not wish the French Government to go to the Inter-Allied to say they were now to give them the tonnage which used to be allocated to you, inasmuch as you would still have to look after the requirements of your British friends and of the Suez Canal Co.; you further suggested that you thought you ought to ask the French Government for the same handling charge as Messrs Lamberts get from the British Admiralty but that you were quite prepared to put it up a little if Mr. Dunn would also put up his rate although you did not want the French Government to tell you that you were charging more than the British Admiralty were paying.
You also mentioned that you would require a guarantee from Messrs Moxey, Savon & Co. that they would not underquote you for this business inasmuch as your Government would give the business to a French firm and therefore Messrs Savon might be asked to quote, in which case you would like it to be arranged that they put in a higher figure than the one at which you tendered.
You told us however that you would prefer to wait a reply to the telegram which you sent to Port Said two days ago for the information which you required to enable you to make up your price and when this came to hand you thought you would be quite willing to tell Mr. Dunn the figure. Further that you proposed to name two figures, one in case, you had to pay into the Pool and another (which would be lower) if you were exempted from the Pool payment. You also said you thought your lighters ought to be exempt from requisition as Messrs Lamberts are in connection with their operations for the British Admiralty.
On reference to the Agreement we find that it is necessary for you to consult your neighbours before handling coal and that if you do handle coal it is definite that you have to contribute 1/6 per ton to the Pool.
We shall await the letter which you said you would write us today before taking any further steps in the matter although in accordance with your instructions we shall mention it to Mr. De Lubersac on the first favourable opportunity.
We are, dear Sirs,
Yours truly,
James Burness & Sons