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2.

restrictions will in effect be withdrawn although no reference

is made to them in any form for obvious reasons. It is intended

that just before publication of notification British shipping companies will be verbally informed by me that the request formerly made that they should refuse passage to British subjects desiring to return is no longer being maintained. In this way

the position of British subjects in North China where only British shipping is available, should be eased and they will be placed on the same level as those in Hongkong and elsewhere.

I have already set up an official consultative committee

composed of leaders of British organisations whose advice will be

useful in dealing with cases where financial assistance in some

form may eventually be required. In this connexion I should like

to have a reply as to whether authority referred to in Foreign office telegram No. 302 to Nanking, paragraph 2 will be forthcom-

ing.

I am of opinion that it would be politic before publication

to inform American authorities of our intention to withdraw

restrictions while still maintaining advice.

I shall take no action until you and Commander-in-Chief have

approved new text and policy outlined.

Repeated to Foreign Office, Peking, Commander-in-Chief,

copy to Major-General, and Senior Naval Officer.

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