COPY.

(F 5960/4880/10)

CONFIDENTIAL.

Memorandum on question of claims

arising out of present hostilities in China.

47

On 20th August, 1937, a communication was addressed

to the Governments of Japan and China informing them that His

Majesty's Government must reserve all their rights as regards

holding them responsible for damage or loss to either life or

property that might be incurred by subjects of His Majesty as

a result of action taken by the Japanese and Chinese forces

respectively.

2.

It is anticipated that claims will fall into three

classes. The first class consists of claims which would be

good in international law, irrespective of the question whether

what has been happening in China is to be regarded as a war or

not; this includes all cases of looting by Chinese or Japanese

soldiers. Claims which fall into this class will be presented

against the Government whose troops were responsible for the

loss or damage sustained. In such cases as these the position

is that the military forces either were under the control of

officers at the time, in which case their Government is

clearly responsible, or, if they were not, that the Government

concerned is equally responsible for culpable negligence in

failing so to control thom. The legal basis for all these

claims is that there has been a breach of international law

arising out of the illegal actions of military forces.

3.

The second class consists of claims, if any, which

would be good in international law even if a state of war

existed/

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