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Bacon, Edwin M.

"Manual of Ship Subsidies"


The project was brought before the Reichstag early in 1884 and warmly
discussed. Earnest protests were raised against it by shipping merchants
of the chief German seaports;[CL] while earnest support came from other
merchants and varied interests. The initial proposal was for the
establishment of a subsidized mail service by German steamships. It
contemplated an annual subsidy of four million marks, with fifteen
years' contracts, for such service between Germany and Australia and
East Asia. The measure was defeated in the Reichstag that year. Brought
forward the next year (1885), and in a new form, it was finally enacted
in April and went into effect the following July.
This law increased the annual subsidy from four million marks as first
proposed to four million four hundred thousand marks, of which one
million seven hundred thousand was offered for the East Asian line, to
China and Japan; two million three hundred thousand for the Australian
line, and four hundred thousand for a branch line connecting Trieste
with the Australian line at Alexandria. The contracts in accordance with
it all went to the North German Lloyd Company, of Bremen. The convention
between the Government and this company required that the new vessels to
be furnished must be built in German yards and of German material.


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