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7.
however, a slight hitch has occurred, as the Japanese
companies contend that, while they are prepared to pay
the surcharge from now onwards, the Japanese Consul-
General had no right to pledge them to the payment of
arrears. I am informed by the Manager of the Pilots'
Association that there is a good chance that the dispute
will be settled amicably, and that, as yet, he does not
require offici 1 assistance. Should, however, the
Japanese companies persist in their refusal to pay the
amounts in arrear, I propose to take the matter up
strongly with my Japanese colleague, and to endeavour to
move him to take the necessary steps to ensure that his
predecessor's promise is fully implemented.
11.
hile it is a matter for some regret that it
was found necessary temporarily to abandon the quota
system, I trust that Your Excellency will agree that the
right course has been adopted. In return for the
sacrifice of two seats in the Association which, in any
case, we were unable to fill, and at the cost of only
a minor increase in the Japanese representation, we have
secured the consent of the Japanese authorities to an
arrangement to which they were strongly opposed. The
position of the Pilots' association, both financially and
in its relations with the Japanese authorities has been
considerably strengthened thereby, and the settlement
arrived at has had some small beneficial effect on
Anglo-Japanese relations, as the Japanese Consul-General has been at pains to express his appreciation of the
accommodating/
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