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DEPARTMENTAL No. 2.

The Governor (Hong Kong).

24th December, 1940. cember

Decypher.

D.

R.

4.35 p.m.

11.55 p.m.

124th December, 1940.

24th December, 1940.

No. 154.

XXXXXXX

Addressed to Shanghai telegram No. 285.

Your telegram No. 401. F5 707 - a Hachioj.

Following from Hall Patch.

I assume that paragraph 1 is Hopkins' reply and paragraphs 2 and 3 are from you.

2. Paragraph 1.

3. Paragraph 2. obscure that it seems be leakage, to Tokyo.

This is satisfactory.

Position of French Banks is so unwise to approach them as there might If they are not under Japanese thumb they will probably line up immediately with British and American Banks as soon as policy of latter becomes apparent. But whether they do so or not is of no great importance as they now exercise but little influence in the market.

4. I think approach to French Consul General is also perhaps undesirable as he will almost certainly discuss question with his bankers.

5. If you agree would you please convey substance of 3rd paragraph above to Hopkins.

Repeated to Foreign Office telegram No. 154, Chungking telegram No. 201, Tokyo telegram No. 146, Consul Nanking.

[Copies sent to Mr. Waley, Treasury].

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