The importance of shipping is greatly enhanced in extraordinary times like the present. In fact, with the aggravation of the situation, the shortage in ships' space has become more and more pronounced; the Government has seen fit to take the situation in hand. For the purpose of adjusting the supply and demand of shipping space for coastal services, special permits will be granted to foreign vessels and to ships registered in the Kwantung Province to engage in coastal trade in this country. At the same time, it is expected that self-regulation in the shipping industry will lead to a rationalization of shipping business, obviating thereby any violent rise in freight rates. It must be said in fairness that due to the united efforts of shipping interests, the industry has always remained true to its own mission. The present Law aims to prevent any hindrances to national economy and defence that may possibly arise out of the present emergency. The Law prescribes that approval of the authorities is necessary for selling, chartering, mortgaging or transfering Japanese vessels to parties who are not entitled to own Japanese vessels (Article 3).
Regulations for importation of foreign vessels have been rendered easier. For, whereas it has hitherto been the rule to limit such ships to those under five years of age and with a speed of not less than 13½ knots, now matters of age and speed are considered generally with reference to vessels built after the World War (Article 14). The Government may impose restrictions on ships' routes, and may, after deliberations by the Shipping Control Committee to be created by Imperial Ordinance, issue orders concerning matters of freight and charter rates, and prices of vessels (Article 7). The Government
is further empowered to issue orders concerning the building of ships, including the matter of priority: for instance, the building of excursion boats may not come before the construction of certain other vessels (Article 8), and the Government may cause separate regulations to be issued concerning the qualifications of the ships commissioned to routes subsidized under the Law concerning the Subsidies for Operating Distant Routes. Also separate regulations will be issued by orders concerning the number and the licences of officers and crew to be taken aboard a ship (Article 12).
This Law is expected to be enforced on October 1st, and the Law shall be annulled within one year after the cessation of the China Affair (Addenda).