SECRET,

MESSAGE.

IN.

FROM

G-in-C.Cnina.

DATE-

21/10/37.

REOD.

2029.

FOREIGN OFFICE CYPHER K.

ADDRESSED-

42

62

355.

Admiralty, Nanking 80, repeated Tokyo 49, Shanghai, R.A.Yangtse 956.

Asiatic Petroleum Company's motor cil barge was

machine gunned and bombed by cne aircraft about six

miles below Wusih on the grand canal on October 14th.

Barge was displaying Union Jack on rocf. Eight bullet

holes in structure. No material damage and presumably

no casualties.

2.

3.

Admiral Hasegawa states:-

"The Japanese naval air squadrons were engaged in

machine gun attack on Chinese Vessels carrying war

materials on water ways in Wusih Suhsu areas cn 14th

October, but there was certainly no intention of doing

anything like carrying out a machine gun attack on

any ship recognised as belonging to a British firm.

Although we pay particular attention generally respecting rights of a third power as regards machine gunning by aircraft, the waterways in this area are at present being used by Chinese army ior transport of

important war materials. Your ships, motor cars etc

operate in vicinity of Chinese ships, motor cars

engaged in transporting war material, it is really very hard to tell the difference, and, as I have said before, Japanese Navy is not always able to guarantee the ir safety"

Principle followed in regard to British Merchant Ships cn high seas, territorial waters or river has been to give no prior information to Japanese of their movements except in cases where ships are likely to pass close

to (?uctive) operations. In these cases

I have.......

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