THIS DOCUMENT IS THE PROPERTY OF HIS BRITANNIC MAJESTY'S GOVERnment

FAR EASTERN (JAPAN).

CONFIDENTIAL.

August 8, 1938.

SECTION 2.

71

294

[F 8489/84/10]

(No. 507.) My Lord,

Copy No. 42

Sir R. Craigie to Viscount Halifax.—(Received August 8.)

Tokyo, July 13, 1938. WITH reference to my despatch No. 402 of the 16th June, I have the honour to report that during the past month the vernacular press has continued to find fault with the attitude of France towards the Sino-Japanese conflict.

2. The Kokumin, to an outspoken article in which I alluded in my despatch under reference, has on several occasions returned to the attack, and in a leading article appearing in its issue of the 23rd June declared that it was impossible to take at their face value French denials that arms were being sent to Yunnan Province via French Indo-China. No amount of argument put forth by the French Government would alter the fact that war materials from France were reaching China in this way, and it was impossible to believe that this was going on without the knowledge of the authorities in Paris. The attitude of France towards the conflict in which Japan was engaged was reminiscent of the attitude she adopted, together with Germany and Russia, at the close of the Sino-Japanese war of 1894-95, when the three Powers intervened to rob her of the fruits of victory. This attitude was most regrettable, especially in view of the fact that France and Japan had been allies in the Great War. Again, on the 29th June, the same paper challenged the French Government to deny a report that France was about to lend 150 million francs to China for the purpose of constructing a railway. It was contrary to the principles of humanity to help the régime of General Chiang Kai-shek in this way to prolong its struggle against Japan, and aid rendered to China was more to be deplored than air attacks on Canton. The loan agreement was unmistakable evidence that France intended to stand in Japan's way and Japan would have to act accordingly.

3. The Yomiuri (27th June) criticises the French Government for having made representations to the Japanese Government in regard to the island of Hainan, referring especially to reports that they were proposing to send troops there and that they were endeavouring to persuade Great Britain to co-operate. Such tactics could only be designed to impede Japan and might lead to serious consequences. French arms continued to find their way to China through Haiphong and ports in Kwangchow Bay and the attitude of France was thoroughly "insincere "; she was urging the Chiang régime to resist Japan and at the same time trying to obtain concessions from it. She had no right whatever to protest to Japan.

4. Meanwhile, fuel was added to the public indignation at the French attitude by reports which appeared in the press of what had been seen in French Indo-China by a Japanese recently deported by the French authorities. Day and night, this eye-witness is reported to have said, large quantities of weapons of French make were being unloaded at Haiphong and transported to Hunan and Yunnan Provinces; roads had also been constructed in order to expedite the transportation of these supplies.

5. On the 30th June the Nichi Nichi defended Japan's right to extend the hostilities, if necessary, to Hainan and asserted that it was illogical for other countries to interfere with such a right. It was common knowledge that Great Britain had been helping China through Hong Kong, and France had been doing the same through French Indo-China. The falsity of their denials was proved by the conclusion of a railway loan with the Chiang régime.

6. During the early part of July the action of the French authorities in occupying the Paracel Islands gave rise to further indignant remonstrances on the part of the press. The Kokumin, in a leading article (6th July), deplored the French action, which it maintained must have been due to a serious misunder- standing of the situation. It was perfectly legitimate for Japan to bomb Hainan and the agreement between China and France on the subject of the island made

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