12
will disintegrate and be forced to leave Hankow.
He considers that whatever may happen in the North,
Southern leaders will not easily accept Japanese
domination, nor will they agree to any terms
recognising economic or political domination of the
North by Japan. Even if there were a crash of the
entire financial structure he would not rule out
the possibility of a Central Government under
leadership of music. Kuangsi group continuing,
which would make establishment of Japanese puppet
governments exceedingly difficult. He therefore
does not agree that H.M.G. should restrict supplies
to the Chinese Govt. and suggests that nothing is
to be gained by attempting to placate Japan.
to.
He adds that it is to our definite advantage
encourage building up the line of
communication across Chinese Western frontier.
? Put by 35 to 39.
71672
Mr. Howard to see.
SW
of slowed,,
Im.
P. Rogers
15.2.
14.2.38.