? minesweeper

by the submarine in self defence.

Our claim for satisfaction must rest on the

fact that British lives were lost and other British

subjects injured. The Japanese recognise this to

the extent of saying that if there were British

subjects killed and if they did not take direct part

in challenging the attack, the Japanese Government

will not be slow to express regret and are prepared

to consider indemnification. In the circumstances,

therefore, however unpalatable it may be, I think

Sir R. Craigie's suggested reply (see enc. 2 in 9)

is the only practicable course. There seems to be

little advantage in referring to Hong Kong before we

answer the F.0., and the Governor, who had a copy

of Sir R. Craigie's telegram a fortnight ago, has not

seen fit to communicate to the S. of S. any differing

views.

? Reply as at Q, and add that in the circumstances

there would appear to the S. of S. to be no advantage

in pressing the Japanese Government further at this

stage, and that he therefore is in agreement with the

line of the reply which Sir R. Craigie suggests,

and say that a copy of No.11 and of this reply will

be sent to the Governor of Hong Kong for his

information.

a do so scent LF

sschant

16.5.38.

is

Having regard to the findings the

Commission's Report, I must say that I find it

hard to swallow the Japanese reply (see enclosure 1

to No.9).

I

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