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PARAPHRASE TELEGRAM.
R-223 JAN 18
From the Governor of Hong Kong
to the Secretary of State for the Colonies.
(Received Colonial Office 2.27 p.m.22nd January, 1918).
3206
My telegram of January 17th in code.
?effect
Very serious (group omitted) on Colony's trade is being produced by embargo on export to Japan. ?Stock market) (?group omitted) is depressed and sinister rumours are spreading. Following is a typical case:- French Consul has asked with
reference stoppage of transhipment of large quantity of Coconut oil from Saigon, whether he is to notify his Government that they should ship direct to Japan in future. Japanese Consul has enquired whether any explanation of prohibition can be given him. I would request full instructions at earliest
possible date. Can any public statement be made? In view of fact that Japanese so largely control Far Eastern Shipping, any local embargo can pro- duce only very temporary effect upon Japan, and must do immense injury to the (Colony.
MAY.