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Ambassador in Tokyo has been making frequent representations,

in support of local negotiations at Shanghai, with the

object of obtaining permission from the Japanese military

authorities for the resumption of normal commercial

activities in that area of shanghai at present under their

control.

5. Sir Robert Craigie has now reported that he has been

informed that restrictions have been necessitated by local

military considerations and that when quiet is restored and

a safety area secured "it is thought that the restrictions

will be withdrawn". The decision to relax or increase

restrictions can, it is stated, only be taken by the

authorities on the spot. Arrangements for the removal of

stores belonging to foreigners are now being studied and

will be put into effect as soon as possible in the light

of prevailing conditions.

6. Pressure to obtain the restoration of normal

facilities in the area affected will be continued both

in Tokyo and Shanghai.

I am,

sir,

Your obedient Servant,

Gro. Orde

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