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able that they should forthwith be consulted.

My Committee's own view is that there will be better

prospect of impeding the Japanese effort, and of retaining the good- will of the Chinese people and Government with a post war settlement as well as the prosecution of the war in view, if the British employ- ees of the Administration remain at their posts for so long as the

Further, in my Japanese will tolerate their retention of them. Committee's judgment, no useful purpose will be served by endeavour-

ing to restrict the output of the Mines. If, as they presume, transportation is the limiting factor, the test prospect of putting an impediment in the way of the Japanese war effort will be to see to it that by the occurrence of petty "accidents" the working of the Port of Chinwangtao, and more particularly the loading of vessels for Japan, is delayed. On the question whether or not it will be possible and politic to convey a suggestion to the Joint General Managers that they should attempt so difficult and dangerous a game

the Committee of lanagement prefer to express no opinion pending

the receipt of advice from the Chinese Government.

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