COPY

(F 12381/21/10)

6" (151//70J/38)

Copy to: Foreign office No.803.

18

British Embassy,

Tokyo.

18th October, 1938.

Your Excellency,

With reference to Your Excellency's despatch No. 37 of the 22nd July and telegram No. 77 of the 7th September I have the honour to transmit herewith a translation of a

Note from the Japanese Ministry of Foreign Affairs regarding the detention of the 8.8. "Asian".

2. Your Excellency will observe that, in the phraseology of the Note, the Japanese Government are unwilling to bear "the entire responsibility" for damages resulting from the detention of the vessel. I understand that this statement admits the interpretation that they will in fact admit partial responsibility. With regard to the loss of articles from the vessel, it will be noted that the Japanese Government refuse to give this part of the claim further consideration; and though the matter could be cleared up by production, in original, of the document signed by the Captain, I consider that any effort to press this point might result, not in an admission of error by the Japanese authorities, but, in a disappearance of any willingness on the part of the Japanese Government to discuss even a part payment of the losses due to the detention itself.

3. I suggest therefore that, provided that Your Excellency agrees, a member of the staff of His Majesty's

Embassy

His Excellency

Sir G.A.S. Northcote, K.C.M.G.,

Governor and Commander-in-Chief,

Victoria,

Hongkong.

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