2-

31

4

an important source of cheap food supply to this Colony,

which it is, moreover, essential to conserve in the

general interests of defence.

3. Some improvement has recently been noted in the

situation owing to the institution of an intermittent

patrol by the Naval Authorities within territorial waters

to ensure that no irregular actions by Chinese or Japanese

belligerents take place within such waters; and no attacks

have been noticed when a patrol boat, either of the Navy

or the Water Police is in sight, but the owners of the

larger junks are still afraid to put out to sea beyond

territorial waters. This fear is well founded as a

patrol boat could not interfere outside territorial waters

if the Japanese ignored her presence.

4.

I shall be glad if further consideration might

be given to the question whether representations on this

subject should not be made to the Japanese Authorities.

No doubt in that case the Japanese will assert that these

attacks are justified by the necessity to prevent the

Chinese from reconnoitring their bases or conveying

munitions of war into China, or that they are made in self- defence against hostile Chinese craft; and they will probably revert to the suggestion, which is discussed in

previous correspondence (vide my secret telegram No.74 of 23rd March, 1938,) that junks should bear special

markings. Nevertheless, both on general humanitarian grounds and in the interests of an important industry and of the workers in it, who represent one of the best

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