Appendix to Agreement No. 57 9. 10. CHARTERING VESSELS Member Lines may not charter for full or part cargoes in their vessels at less than Conference rates except with permission of the Conference, or as provided below; however, nothing in this rule shall preclude or restrict Member Lines from chartering their vessels on a bareboat or time charter form. Part Cargoes or Full Cargoes Split into Part Lots: Member Lines may charter for part cargoes or full cargoes split into part lots on more than one vessel on "open" rate commodities, subject to such minimum rates and conditions as may be specified in the Conference tariff. Full Cargoes: Member Lines may charter their vessels for full cargoes on each vessel on any basis for "open" rate commodities and shall not be subject to a minimum rate provided the charter is to one shipper and moving on a standard form of Charter Party. CLASSIFICATION OF DISCHARGE PORTS This Rule can only be changed by unanimous consent as provided in Article 24 of the Basic Agreemont. 1. 2. RATES TO MAJOR PORTS: Namely, YOKOHAMA, KOBE, OSAKA, HONG- Member Lines, may, if they so desire, tranship and meet RATES TO DIFFERENTIAL PORTS: NAMELY, TAKAO, KEELUNG, (a) As a basis for tariff rates to Differential Member (b) On Overland Traffic to Differential Ports Appendix to Agreement No. 57 12. 3. RATES TO ARBITRARY TARIFF POINTS (All Points other than Member Lines, may, if they so desire, meet the lowest (a) RATES TO SHANGHAI (DELETED) (b) RATES TO DIFFERENTIAL PORTS Tariff rates to Differential Ports shall be as follows, unless otherwise agreed: For the purpose of establishing uniform practices, the Members of the Pacific Westbound Conference will participate as Members of the Pacific Cargo Inspection Bureau, which has been set up to protect the interests of Carriers, Shippers and Consignees. The Bureau shall be charged with the responsibility of inspecting cargo and respective records as required to ensure that shipments are properly described weighed, measured and billed. If, and when, errors or discrepancies are found, corrective measures shall be instituted and prosecuted by the Carrier or Carriers involved, and adjustments as determined by the findings of the Bureau shall be final. Mr. HARKINS. The Far East Conference and the Pacific Westbound Conference negotiated an agreement for joint ratemaking in 1952. That is agreement No. 8200, and was approved by the Board in that year, is that not so? Mr. MORSE. I am sure it is. Mr. HARKINS. Prior to the approval of agreement No. 8200, had the Far East Conference and Pacific Westbound Conference cooperated in ratemaking in the Far East trade? Mr. TIBBOTT. I believe back in 1928 or 1930, there was an overland agreement. Mr. HARKINS. There was another agreement at that time? Mr. HARKINS. Apart from that, would there have been any cooperation that you know of in ratemaking? Mr. TIBBOTT. No, sir. Mr. HARKINS. I would like to read a letter dated February 21, 1940, signed by the secretary of the Far East Conference, then Mr. Paul Albert, addressed to Mr. W. G. Tait, secretary of the Pacific Westbound Conference, 943 Stuart Building, Seattle, Wash. I will read the whole letter. DEAR BILL: At the meeting this morning it was brought out through some of the members also having membership in your conference that certain recent exchange of correspondence between yourself and the writer has been circularized under Pacific conference circular letters by you. Our members here consider this rather a dangerous practice in view of the fact that there is no joint agreement and feel that while our exchanges have been perfectly legitimate and have simply been answering inquiries back and forth and exchange of mutual information, still the circularizing of such exchange of correspondence might lead to the impression that an agreement between the prospective conferences is being arrived at and might possibly cause inquiry by the U.S. Maritime Commission as to why the agreement is not on file. It is the understanding of our members here that such exchange of correspondence are to be unofficial and personal between the secretaries and urgently request that in the future such letters be not made a matter of official conference record or quoted in official numbered circulars. We do not make copies of your communications here unless it is vitally important that each line have a copy. And in such case, simply mark as copy, and do not make as a conference memorandum. In most cases, however, the letters are simply read at the meetings for information of member lines, and for expression of their views as to any information that they desire to have transmitted to the secretaries of the other conferences. We think it would greatly help in the exchange of views and be more in line with the thoughts of our members here, if such correspondence is kept strictly confidential and on a personal basis. I know you will understand that no personal criticism is intended in this matter, it is simply that the members here feel that it is not wise to circularize such exchange of correspondence. Now if you had an agreement between two conferences not to exchange correspondence, and not to publish the letters passed between the secretaries of the conferences, but only to have private confiden-› tial communications passed between the secretaries of the conferences, wouldn't that in itself be an agreement? Mr. MORSE. If it is material dealing with transportation, I would say that that would be a section 15 agreement. Mr. HARKINS. Attached to that document are several notes of telephone conversations. If you will hand it back to me, I will read them. This is a memorandum of a telephone conversation with J. A. Dennean, written by Mr. H. E. Hornung, dated July 11, 1951. It is quite obvious that most of the telephone conversations dealt with rates. Under the heading "Okinawa," for example: Effective immediately Far East Conference is including a rule in their war emergency section, page D, to provide that rates to outports will not include special rates temporarily established to base ports only. Dry skimmed milk-Far East Conference declined request for reduction by International Dairy Products, Oakland. Fertilizers for Government agencies-rates increased by approximately $4.00 a ton effective immediately. And throughout this document, for July 11, 1951, September 25, 1951, October 17, 1951, October 30, 1951, are similar notes of telephone conversations between the conference chairmen or secretaries dealing with rates. If there is an agreement between the two conferences to discuss rates, but not to include such discussions in any minutes of approved conference agreements, wouldn't that agreement in itself be such an agreement that must be approved by the Federal Maritime Board? Mr. MORSE. I would think that would be a section 15 cooperative working arrangement. Mr. HARKINS. Mr. Chairman, I offer for the record this document dated February 21, 1940, and the minutes of telephone conversations in 1951 that were referred to. Mr. ROGERS. They will be received. (The documents referred to follow :) Our Members here smider this rather a dangerous notice in view of the fact that there is no Joist Agreement and feel that shile our exchanges have been perfectly legitimate and have simply tiem, still the sircularizing of such srchange of scrrespondance forenoos is being arrived at and might possibly same inquiry by United States Maritime Comission as to why the igressent le neš of our Members here that such ersbon.go onse simply mark as "copy" and do not make as a Conferace Memorandum. information of Humber Linse and for expression of their views as to my information that they desire to have trungutted to the Secretarios of the other Conferences. mere in lime with the thoughts of our Members here if much carrier pandance is kept strictly emfidential and em a personal basis. I know you will understand that no personal criticim it im tended in this matter, it is simply that the Numbers here fual that it is |