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authorized to make a public statement of the reason for

on Exports

A

the present embargo to Japan, Lord Robert Cecil is of the opinion that the Governor should be authorized

to inform privately those concerned that, owing to the delay on the part of the Japanese Government in taking action to control shipments from Japan to Russia and the re-exports of imported goods which His Majesty's Government understand to be taking place, it has been found necessary to obtain guarantees from firms in Japan against such re-export, and to suspend the issue of licences to firms who have not yet given such guarantees. If, however, he wishes to make a public statement on this matter I am to suggest that he should be instructed to consult direct with Sir C..

Greene as to its form.

4. With regard to the questions asked in the second of your two letters under reply, I am to add that the French and United States Governments have been requested to take similar action in this matter to that taken by His Majesty's Government, that the Chinese

Government

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Government have agreed to stop all exports to Russia,

and that His Majesty's Minister at Peking has been

warned against the possibility of indirect shipments via Japan and instructed to take any precautions he may think necessary.

5. In conclusion I am to say that Lord Robert

Cecil concurs in the action taken by the Governor of

Hong Kong as reported in the enclosure in your letter

of the 22nd. instant.

I am,

sir,

Your most obedient,

humble Servant,

Eque A

Crowe

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