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else the impression that we are withdrawing
from any but our own good reasons connected
with the war, and gradual withdrawal is
designed to buttress that idea. It follows
that there is no question of increasing our
naval strength at Chinese ports in present
circumstances, whatever may prove possible
later when Italy's attitude becomes crystal-
lised.
So far as discussions with Japan about
Tientsin are concerned, that is one of the
questions on which we hope to improve our
relations with Japan without sacrificing our
principles or evading our treaty obligations
towards China, in accordance with the policy
which has been enunciated in Parliament on
more than one occasion, e.g. by the Secretary
of State in the House of Lords on 3rd August
last.
Since in retaining a gunboat as long as
possible at Shanghai and at Canton our
intentions are not "symbolic" but are dictated
by regard for American and Chinese suscep-
tibilities, and since even these two ships aré
also to be withdrawn eventually, no question
of a "counterbalancing step" seems to arise.
Draft replies to Mr. Gull and Mr. Swire
submitted.
Auscoth December
December 22nd. 1939.
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