2.
The position is further complicated by the fact that International Red Cross negotiated [grp. undec.] agreement with Japanese Consulate General and new Chinese administration for the issue of a permit for construction of a refugee permanent camp in the same area but without success. These negotiations took place without British and American Consuls General being consulted and were badly handled.
The four American members of the council and the Secretary
General do not wish to raise outside roads question in this form since any clash with Japanese would upset improved relations now existing between Changhai municipal police and Japanese authorities
and Commissioner of Police takes the same view.
The American Consul General and I feel that the above proposal might have serious repercussions and that question of the council
opening negotiations with new de facto local Chinese administration
to secure a working arrangement over construction of refugee camps will have to be decided at an early date.
The whole matter is bristling with difficulties since there
is a tendency in many quarters to regard western district as
immune from any Chinese control owing to district being in British
defence area.
The British members of council are anxious to go ahead without
any negotiations but they realise that policy of His Majesty's
Government must first be definitely ascertained. In my opinion
in the event of council taking the course suggested there is a risk.
of our being left to carry the whole responsibility which is of course an international responsibility and I have stated this view to British members.
I should be grateful for your instructions since I feel that the most we can press for in regard to outside roads is maintenance of status quo ante.
Repeated to His Majesty's Embassy Shanghai, Foreign Office, Commander-in-Chief and saving to Tokyo, copy to Major General and Senior Naval Officer.
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