22

The cash position appears not to cause any

Mad Ma

local uneasiness; like мr: Rogers, I cannot understand why. But we have already put this

point to them; and they must be fully aware of

the probable difficulties of raising a loan,

#in

Nor can anyone

in present circumstances. Mr: Caine seems quite

satisfied with the position; and I think we may

therefor leave that matter as it now. stands.

k. Generally, it seems quite impossible to make

any broud forecast as to the effect of recent

Japanese action, vis-à-vis H.K. I think that,

the long run", Mr: Gent is probably right; but it

may be a quite long run; and meantime H K is

largely cut off from its hinterland.

for any satisfactory idea, at present, as to how long Japan may occupy strategic positions in

S China, or how her action there may develop

otherwise, even if the ultimate objective as as

air: ent thinks it probably will be. I do not know

enough of the position in the Far East to hazară

any conjectures as to the probable outcome of

Japan's attack on China. Literally, almost anything

may happen.

3. In these circumstances, it seems to me that the

only practicable course is, in effect, to leave

matters to the local authorities. That is in

substance what mr: went proposes.

They are ANË

watching the position closely, and will continue

to do so; so far, there are no indications that

anything in the least catastrophic is likely to

happen.

The 3rd: "anuary 1939.

السي

3/1/59

Share This Page