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(78/720/40)

BRITISH EMBASSY

TOKYO.

23rd October, 1940.

54

My dear Minister,

on May 27th last I addressed a letter

to Your Excellency's predecessor inviting his atten-

tion to the reports then current that a new bank

of issue in Central China might be set up under

Japanese auspices by the Government established in

Nanking. In this letter I pointed out, on instruc-

tions from ny Government, that such action by the

authorities in China under Japanese occupation would

have the most unfavourable effect on the trade of

third Fowers and would be incompatible with the

sssurances which the Japanese Government have so

frequently given to respect foreign interests in

china. In conclusion my letter expressed confidence

that it was not the intention of either the Japanese

or Chinese authorities in China to set up this new

bank of issue and requested Your Excellency's preds-

cessor to give me any information available on this

/ subject

His Excellency

Mr. Yosuke Matanoke,

ils Imperial Japanese Majesty'a

Ministar for Foreign Aff

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