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the Council appear Whave agreed to British Consular permits being required for the movement & goods through the concession gates or over the Bundlie by boat).

Su J. Broman

Mar Fitzmaurice.

Au Sc5 4 13/3

{

The additional powers desired by Mr. Blunt

relate to the prohibition of the entry or residence of Japanese and Chinese and of the storage of their

goods within the concession. He would exercise these powers to maintain the neutrality of the con- cession during the hostilities and also to retaliate against Japanese restrictions on British subjects in

the city.

The residence of Chinese in the concession is

already restricted by bye-law to domestic servants and other employees of foreigners, but apparently this exception is being abused.

The Consul-General is, of course, right in trying to observe a strict neutrality vis-à-vis the two belligerents, but I think that the idea of using our control of the concession for retaliation purposes must be pursued with extreme caution. British and French concessions occupy a small island one and a half miles in circumference, and if the Japanese wanted to bring pressure to bear

they

The

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NOTHING

O.L

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